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Financial Tips for Beginning Farmers

Financial Tips for Beginning Farmers

At First Citizens Bank, we understand that the journey to becoming a successful farmer is both rewarding and challenging. Local business and agriculture are the lifeblood of our communities. That is why we do everything to help local entrepreneurs and beginning farmers get started, grow, and achieve success for the greater good of our community. Whether you are cultivating your first crop or expanding your agricultural enterprise, these financial tips for beginning farmers will help you navigate the path to success:

Create a Comprehensive Business Plan

As a beginning farmer, the first step to starting your farming journey is with a well-thought-out business plan. Use this plan to outline your goals, budget, and financial projections.

Explore Farm Financing Options

There are many financing options for beginning farmers. Understand the various financing options available for farmers such as agriculture loans, equipment financing, and lines of credit.  First Citizens Bank offers financial solutions to fit your need to help kickstart your operation.

Establish a Financial Safety Net

Farming involves many uncertainties, including unpredictable weather and market fluctuations. As a beginning farmer, it is important to build a financial safety net to help protect yourself from unexpected challenges. Building up your savings and having access to credit can help you weather the storm of uncertainty.

Utilize Government Assistance Programs

Take advantage of government assistance programs available for beginning farmers. These programs may offer grants, subsidies, or low-interest loans to support your agricultural endeavors. The Iowa Finance Authority (IFA) and the Farm Service Agency (FSA) both have options for beginning farmers that First Citizens can help you with.


View IFA's beginning farmer options here. Did you know that we are an FSA Preferred Lender! View more info on their Beginning Farmer Loans here.

Monitor Cash Flow

As a beginning farmer, regularly monitoring your income and expenses is important for a successful farming operation. Set a realistic budget and be proactive to ensure you have all the financial resources needed. (Use this budget calculator from Banzai for budgeting assistance.)

Plan for Succession

Develop a succession plan for long-term sustainability for your farm operation. Whether passing the farm down to future generations or planning for a smooth transition, a well-thought-out succession plan ensures the continuation of your farming legacy.

In Conclusion:

These financial tips for beginning farmers are just a glimpse of what can help you become a successful farmer. If you are looking to start your journey to a successful farm operation in Iowa or Minnesota, look no further! Our lenders are farmers just like you, and even our support staff has agricultural experience, providing us with a true understanding of your unique operation. This background, paired with our financial expertise, offers you the best possible partner for success. Contact a member of our First Citizens lending team to get started! 

Our Ag Loan Options

Contact a Lender

What documents do you need for a loan appointment?

  • Three years of financial statements
  • Three years of tax returns