Poultry Facility Loans
Integrated poultry facilities are a popular and growing
production concept in America. The
construction, and/or purchase of a modern poultry facility contracted to a major
integrator is a costly investment; therefore choosing a lender who understands
integrated poultry is also a very critical step.
Associated Farm Mortgage, Inc. has a strong commitment to agriculture, and to
integrated poultry lending; while our conservative approach to lending will mean
we cannot offer a loan to everyone, for those qualifying borrowers who seek a
knowledgeable and committed lender we can and will provide you with the very
best in commercial agriculture mortgages.
Following is a brief overview of our poultry facility mortgage loan program:
loan size is $500,000 – Maximum loan size is $10,000,000.
- We require a First Lien position, but we do allow subordinate liens.
- Maximum loan term for new facilities is 15 years (fully amortized), no balloon payments or
calls on the note. Exceptions to the 15 year term limit may be made
when the depreciable assets comprise less than 50% of the initial value of
- Maximum Loan to Value (for our lien) is 75% on newly constructed
facilities (in service one year or less). The total of all liens
(including subordinate liens) can not exceed 90%.
- Total Debt Service coverage must be 125% or greater after closing of all
loans related to the construction and/or purchase.
- Pro Forma Debt to Asset ratio must not exceed 65% including all debts at
- For facilities more than one year old, the maximum LTV is 65% and the
maximum amortization is 10 years.
- Borrower must demonstrate positive historical credit management with a
supporting consumer credit report.
- Borrower must have an approved and valid contract with a major integrator.
- An assignment of the marketing agreement from the integrator is required.
- Adequate insurance coverage on collateral property.
- The Integrator must have sufficient financial strength to ensure the
ability to perform on the contract/agreement.
- Construction financing currently available in Texas.
- Breeder facilities, due to the nature of breeder facility farms we will
only finance 55% of the value, and cash flow coverage calculations must
include full time outside labor expense.
Call or Email us if you have any
questions. If you would like to apply for a loan please complete our Preliminary
Application form and submit it online.