October 2, 2015 CapitalPress.com 3 Know your business, have a plan By LACEY JARRELL For the Capital Press PENDLETON GRAIN GROWERS, INC. 85 Years of Service and Still Offering Competitive Prices to Washington and Oregon Residents. Lacey Jarrell/For the Capital Press Mitch Stokes, manager of Northwest Farm Credit Services in Klamath Falls, Ore., says the best time to secure an operating loan is at the end of the production cycle, when farmers have a good picture of their year. that’s on it is yours and that you’re making any debt pay- ments that you have currently on time, every time,” he said. Stokes also advises prospec- tive buyers to have a reserve fund, whether it’s savings for a down payment or for a rainy day. He said real estate pay- ments can be as low as 5 percent of the selling price, but having as much cash on hand as possi- ble can make the buying experi- ence smoother. Prospective home or land buyers should also do their best to limit other debt, he added. Boyle said farmers who bor- row money for seasonal lines of credit have also enjoyed re- cord-low interest rates, but that is also expected to change in the next year or so. “Everything I’m picking up suggests the Fed will begin to bump those short-term rates sometime before the end of this year,” Boyle said. The best time to secure oper- ating loans is in fall, at the end of the production cycle, because farmers typically know what goods they have and what they are worth, according to Stokes. 24 - 80 hp., 4 wheel drive Compact Synchro- Shuttle Hydro 24, 28, 35, 47 hp Model 4020R SERIES 3120R 4020R 3520R 4525R 3510H 4720H 6640 8050 INTRODUCING THE NEW BRANSON BOSS 800 UTV’s: Two-or-Four door models have 60hp and speeds up to 58mph. • Front Winch • 14” Wheels with 27” Tires • Hard Doors & Roof • Top Mount LED Light Bar • Electric Dump Bed Contact us today for more information on our services. WSG15-4/#6 Long-term interest rates are still at historic lows but experts anticipate they’ll be- gin creeping up in the coming months. According to Mitch Stokes, manager of Northwest Farm Credit Services in Klamath Falls, Ore., the agriculture econ- omy generally moves count- er-cyclical to the overall econo- my: When the economy is doing well, agriculture suffers a bit. He said if the economy continues gaining momentum, it could have a counter-cyclical effect on agriculture and lower commod- ity prices. Stokes said if the value of what is produced is less than previous years, the ability to se- cure financing could be impact- ed, because commodities are a component of working capital. He explained that long-term low commodity prices could affect purchasers’ repayment capacity because there isn’t as much val- ue in goods. It’s not all bad news, though. “We’re looking at rates today that we might not see again. It’s a great time to get a loan,” said Bob Boyle, regional vice presi- dent for Northwest Farm Credit Services in Salem, Ore. Stokes said before attempt- ing to secure financing, farmers and ranchers should have a fun- damental understanding of their business and a solid business plan that positions them to be successful. “When we’re working with farmers and ranchers seeking credit, our hope is that they’ve taken the time to really look at their finances — with a vision looking ahead over the next three to five years,” Boyle said. According to Stokes, a pri- mary concern for loan officers working with prospective buy- ers is that they haven’t handled what credit they do have respon- sibly. “The advice I give first-time buyers is to make sure your per- sonal consumer credit report is clean and tidy. That everything THE TRACTOR STORE (541) 342-5464 (800) 422-7611 5450 W. 11 th , Eugene, OR www.capitalpress.biz/hosted/tractorstore WSG15-4/#5 • pggcountry.com PENDLETON GRAIN GROWERS, INC.