Production Revolving Facility

Agricultural businesses often need funding before income is received from crops, livestock or other production activities. Rising input costs, seasonal cash-flow requirements and recurring production expenses can place pressure on farming operations.

The Land Bank Production Revolving Facility is a short-term agricultural production-finance solution designed to support approved seasonal and operational farming costs. It is designed for recurring agricultural production requirements and is structured to align access to funding with the farming cycle.

Qualifying clients receive access to an approved revolving facility and may draw funds as required within the agreed terms. Once the relevant repayment conditions have been met, clients may access the facility again without having to originate an entirely new loan for every production cycle, subject to annual review and approval requirements.

Why it was developed?

• To respond to rising production input costs and seasonal working-capital pressure.
• To provide a funding model that better reflects the recurring nature of agricultural production.
• To improve the client experience by reducing the need to start a completely new funding process for every production cycle, subject to the applicable facility terms.

Who should apply?

• Commercial farmers
• Developmental farmers
• Crop producers
• Livestock producers
• Mixed farming enterprises
• Other qualifying agricultural businesses and value-chain participants
  
   
  
  Application process

1. Submit your annual production plan.
2. Land Bank assesses the facility application.
3. If approved, funds may be drawn for approved production requirements.
4. Production activities are undertaken and proceeds are generated.
5. Repayment is made from production proceeds in line with the agreed terms.
6. Subject to annual review, repayment performance and the applicable conditions, the facility may be accessed again during its approved term.

Key benefits

• Funding aligned to agricultural production cycles
• Improved cash-flow support for seasonal production needs
• Flexible drawdowns within the approved facility structure
• Clients are eligible to request a full re-advance once they have repaid 80% of the outstanding loan for annual crops, and 55% of the outstanding loan for perennial crops (such as wine grapes). This functionality forms part of the product's revolving facility, enabling clients to re-access capital during the approved facility term without the need to originate a new loan, subject to the applicable terms and conditions.
• Recurring access to approved funding, subject to the applicable terms
• A specialist agricultural finance solution from Land Bank

What may be financed

• Seed and fertiliser
• Animal feed and veterinary expenses
• Fuel and irrigation costs
• Contractor services
• Crop or livestock insurance
• Farm wages
• Packaging and marketing costs
• Other approved production expenses

Learn More

To find out whether the Production Revolving Facility may suit your farming operation, speak to your Land Bank Relationship Manager or log an inquiry to get a Bank representative to contact you.