Some Nebraska producers may be feeling a financial crunch and considering some unfamiliar options to manage their debt. For those negotiating a workout agreement with their creditor or creditors to restructure debt under challenging financial circumstances, the author lists several points to consider.
Your lender informs you that your unpaid operating loan will not be renewed. What are your options? Loan foreclosure? Bankruptcy? One important option in Nebraska is farm credit mediation. This is when you and your creditor (or creditors) sit down with a trained mediator who tries to facilitate a compromise among the parties that avoids loan foreclosure and bankruptcy.
A 2013 tax law change–the portability rule–can simplify farm and ranch estate planning. Farm and ranch families still need to do estate planning to develop and implement farm or ranch business transition plans so that the farm or ranch can continue to be successfully operated by the next generation. This Q&A addresses a number of questions.
In today's tight agricultural economy, a lender may require you to provide additional loan collateral—including land—as a condition for receiving continued operating credit. For example, if your carryover operating debt is $160,000, the lender might suggest moving the loan onto some land, machinery, or other property that is clear of debt.
When an ag lender denies an operating loan for the next year and new funding sources are sought, a subordination agreement may be helpful in securing new credit while still laying out a payment plan for existing debt. Here’s what to consider.
Parents co-signing loans for their children is common in agriculture. Traditionally, it has happened when a younger producer needs a loan for major purchases such as land, livestock, or farm equipment. Given current low crop prices and thin operating margins, parents also may be asked to guarantee payment of a child's debt when the younger producer is having difficulty repaying a loan. While no one wants to see a financial loss for their children, parents need to carefully consider the potential for losing a significant amount of their savings before signing on the bottom line.
Before signing a solar lease, consider how it may impact your taxes, insurance, federal agriculture programs, and other property rights such as oil and minerals. This article looks at solar leases and points to consider in Nebraska.