In the modern world, credit for farmers is no longer surprising. A farm, in order to remain profitable, competitive and modern, must be properly invested. You need to take care not only of crops or inventory, but also of the machine park, fertilizers and agricultural vehicles as well as other elements that translate into quality and safety of production as well as employee comfort. Unfortunately, agricultural credit is also needed in the event of natural disasters and other random accidents that are independent of the farmer’s hard and systematic work.
Finally, the farm owner can simply take out a loan for farmers for any purpose just to achieve this goal – and these can be the needs of both the operation of the farm itself and home renovation, buying a car, dream vacation or daughter’s wedding, christening grandchild or other family celebration. Income obtained in agriculture entitles to applying for additional financing, and credit for farmers for any purpose is one of the possibilities. Let’s look at it carefully.
Can a farmer take a loan? The most important information
A farm for most banks is a company like any other – dealing with specific activities, generating income and incurring costs. The owner of this company is a farmer who, like the owner of a “traditional” enterprise, can apply for a loan for farmers for any purpose. So the biggest difference is in how you prove your income and the documents you need to provide. The most important are:
- a valid identity document, ie an ID card,
- decision from the Commune Office about the amount of agricultural tax,
- decision to assign a tax identification number,
- Certificates: no tax arrears or contributions. Note that it cannot be issued earlier than one month before applying for a loan for farmers for any purpose.
However, if we apply for a higher amount, the bank may require additional documents, such as confirmation of income obtained from running a farm. We will receive such a document without any problem at the commune office competent for the place of agricultural activity. If, on the other hand, we obtain income from subsidies and want to include them in creditworthiness, the bank or loan company will need official confirmation of their amount. Such a certificate is issued by the Poviat Agency for Restructuring and Modernization of Agriculture.
How is the farmer’s creditworthiness calculated?
When we apply for a loan for farmers for any purpose, the institution that provides financing to us – whether it is a traditional bank or a loan company – will calculate our creditworthiness. How? It is usually calculated on the basis of all income obtained by the farm: subsidies, subsidies and so-called hectare conversion – expressed as a unit of calculation established for agricultural tax purposes.
It is based on the current area of arable land (including arable land, meadows, pastures, orchards, lands under ponds and buildings, wooded or shrubland lands for agricultural land), as well as invoices and forecasts of profits from farming or animal husbandry. Importantly, it does not matter whether the farm is run by one farmer or if it has co-owners (spouses, parents, children or unrelated persons).
What can you use your credit for farmers?
As the name implies, credit for farmers for any purpose can be used according to our needs – regardless of whether they report directly to the farm – the purchase or repair of machinery and vehicles, seeds and fertilizers, inventory and its treatment, repair of farm buildings and paid trainings and workshops – or strictly private expenses. Loans for farmers for any purpose can be used for both foreign travel, buying a car, home renovation, purchase of home appliances and electronics, private treatment and medicines, bills, current expenses or repayment of earlier debts.
No one will monitor how and when we spend the funds obtained in this way, we will not have to provide any additional documents, bills or receipts. Credit for farmers for any purpose can be used, as the name implies, for what we deem appropriate.