Farms and financing--that's a common combination in agriculture. Because farm operators often use financing arrangements to fund the capital intensive nature of farming, we created the Financing the Farm law bulletin series. The series aims to help operators, especially new and beginning farmers, understand the legal workings of farm financing arrangements.
We've just added two new bulletins to the Financing the Farm series. "Personal Guarantees and Agricultural Loans" addresses the legalities of a personal guarantee--a personal promise made by a third party to pay the loan if the borrower fails to do so. We explain when lenders might require a personal guarantee for a loan, how a personal guarantee works, and issues and implications for entering into this type of agreement.
Our second new bulletin is "Understanding Farm Operating Loans." We discuss how operating loans can meet the cyclical needs of agricultural financing and review different types of operating loans. Security interests are a common feature of operating loans, and we explain that component of the loan agreement.
The new bulletins are available here on our Ag Law Library's Farm Finance Law shelf along with these other topics in the series:
- Promissory Notes
- Installment Contracts
- Leasing Arrangements
- Secured Transactions
- Statutory Agricultural Liens
The Financing the Farm series is made possible through our partnership with the National Agricultural Law Center, with funding from USDA's National Agricultural Library.
Tags: farm finance, operating loans, personal guarantee, financing agreements
Mentoring is a rewarding part of my position with OSU, but it is often a bittersweet experience to see young people come and go. Such is the case with our law fellow Evin Bachelor, whom I’ve had the privilege of mentoring for the past two years. Evin left the Farm Office on September 30 to pursue private practice.
While I’m happy to send Evin off to serve farmers with his brilliant legal mind, I’m sad to see him go. I will miss his passion, his cleverness, his analytical gifts, and his hearty laugh. But it’s been a joy to help Evin evolve from a law student curious about agricultural law to an attorney prepared to impact the world of agricultural law. He has deftly exceeded every challenge I’ve given him.
One of those challenges was to co-author a set of law bulletins on legal documents used in farm financing arrangements, his final project. The Financing the Farm law bulletin series, which specifically targets new and beginning farmers, is now available. The series includes explanations of mortgages, promissory notes, installment contracts, leasing arrangements and secured transactions, and how they’re used in farm financing. Access the law bulletins in the Financing the Farm series here.
Evin will be practicing law with our good friends at Wright & Moore Law Co. LPA in Delaware, Ohio. He's an excellent addition to an already outstanding agricultural law firm. You’ll continue to see his work on the Farm Office, however, as I’ll be contracting with Evin on a few more finance and farm transition projects in the next year. The mentorship and Evin’s time at OSU is over, but the relationship will continue. A bittersweet ending, to be sure.
Tags: Evin Bachelor, farm finance, mortgages, promissory notes, secured transactions, installment contracts, leasing