Associated Farm Mortgage, Inc.

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:

• Minimum loan size is $1,000,000.
• If Collateral acreage is 2,000 acres or less, the maximum loan size is $50,000,000; if acreage is greater than 2,000 acres the maximum loan size is $13,000,000.
• A production contract with a major financially sound integrator is required, we do take an assignment on the contract.
• We require a First Lien position, but we do allow subordinate liens (certain conditions and restrictions apply to subordinate liens).
• A fixed rate for the full term of the loan is required on integrated poultry.
• Maximum loan term for new facilities is 15 years fully amortized), no balloon payments or calls on note. Exceptions to the 15 year term limit may made when the depreciable assets comprise less 50% of the initial value of the collateral. 
• 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) cannot 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 close.
• 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 (minimum consumer credit score of: 680).
• 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.

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.