If you own a dairy farm, you understand the importance of keeping your business bountiful. What happens if a vital machine in your milking section breaks down? You can’t risk losing out on business opportunities due to suspended production. Steer your business in the right direction by investing in dairy farm loans to grow or maintain your milk production.
You might be wondering if investing in your dairy farm through a small business loan is worth it. As an American producer of milk, cheese, and other dairy products, you should feel confident in your business outlooks. According to Modern Farmer, the U.S. is the leading producer of milk in the world. Around 9.2 million cows are being milked on 110,000 farms in the United States, and American cows give an average of 6.5 gallons of milk per day.
It’s clear that the demand is there. You may need to increase your supply and improve your operations to keep up. Increasing production levels on your dairy farm takes more than hard work. Access to dairy farm financing can get your business from curdled to copious.
Like most farmers, dairy producers have several options if they find themselves in need of financial support. In addition to traditional banks, dairy farmers can turn to alternative lenders to grow their business. Alternative lenders provide easy access to working capital and fast funding. Plus, their loans are generally easy to apply and qualify for. Once you have access to cash, you’ll want to milk these funds to get your money’s worth. Here are some ways you can spend your dairy farm loans:
Dairy farm loans can be used to finance equipment in order to replace or repair vital machinery. You can purchase updated milking stations and automatic feeding stations to keep your livestock in optimal working condition. Additionally, the funds can be used to purchase equipment to quickly reduce the milk’s temperature and properly cool and store it to preserve its quality. Investing in equipment helps you improve and strengthen your farming operations.
Besides equipment purchase, there are supply costs. Cows need feed, hay, and pasture just to name a few reoccurring supply expenses. Additionally, they often require nutrients, medicine, and veterinary checkups. There are also operational expenses, like fuel and oil. Dairy farm loans can help cover these costs and bridge cash flow gaps.
If you’d like to expand your business operations, you might use dairy farm loans to purchase more land. With more space, you can fit more livestock, which translates into increased production. Financing from dairy farm loans can be allocated towards building a new barn or renovating your current structure to combat unruly weather.
Additionally, you may decide to spend some money on transitioning your dairy production from conventional to organic. According to the U.S. Department of Agriculture, estimated sales of organic milk products increased 4.7 percent between October 2017 and 2018, while the approximate sales of conventional milk products decreased by 0.6 percent. Putting some spend towards using organic practices can help you keep up with the changing U.S. market.
If you’re looking for extra capital to grow and improve your dairy business, consider applying for dairy farm loans. Alternative lenders offer short-term financing with fast approval rates, so you can take advantage of immediate opportunities and cover costs.
At QuickBridge, we provide smarter funding. Our dairy farm loans are designed to match the unique needs and opportunities of your business. We’ll make sure you get the right amount of financing at the right term. Our application process is quick and funding fast. That means you can spend less time filling out paperwork and waiting for approval, and more time figuring out how you’ll spend the extra cash. Contact us today to get started.