Beef Up: Quality Beef Production Made Possible Through Cattle Loans


Today, beef production in the United States continues to thrive. But raising cattle isn’t just responsible for putting tender and juicy steaks on our plates. Cattle also produce dairy products that we all enjoy like milk, cheese, and yogurt.

Why is this industry important?

Come to think of it, America supplies 20% of the beef supply in the world. This makes them one of the major exporters worldwide. That’s quite a huge demand since the country takes pride in producing high-quality beef.

It’s also as important as other aspects of agriculture businesses. This industry provides jobs to millions of Americans all over the country. This is why keeping the cattle industry up and running remains crucial in the U.S. economy.

But that’s not just it. There’s more to cattle than just food production. Cowhides, the natural and unbleached skin and hair of a cow, also make leather and are made into products like shoes, wallets, and bags.

This is why it’s important to have good investments for maintaining and operating ranches and dairy farm operations to keep making quality products from well-tended cows. And since this industry contributes a lot to the country’s economy, agencies provide financing opportunities for farmers and ranchers through cattle loans.

Get to know more about farm loans here.

Who offers Cattle Loans?

Mainly, cattle loans are offered generally through the United States Department of Agriculture or the USDA. Also, a department under the USDA called Farm Services Agency or the FSA provides this type of financing as well.

What are cattle loans for?

Whether it’s for expanding your ranch or starting a small-scale ranch, cattle loans are offered to help develop a growing agriculture business for different purposes.

Larger loan amounts for cattle loans are usually for those who need to purchase land, upgrading and purchasing new equipment or machinery and other necessary technological upgrades and technical assistance.

Usually, this type of loan takes decades to repay. A sufficient capital is what a farmer typically needs to have that serves as a collateral for the loan. These include land, stock, and buildings.

There are loans that are for emergency situations as well. This helps farmers get back on track by getting financing for needed renovations brought about by natural disasters.

How do I know what cattle loan works for me?

First, it’s important to decide on the right type of interest rate. There are fixed interest rates and variable interest rates. Make sure to go with what works for you. Keep in mind that there are also two ways to calculate the interest: simple and compound.

Simple interest is calculated on the principal and the loan over the duration of the loan. Compound interest, on the other hand, is calculated each month on the principal borrowed and the accumulated interest. Also, consider the terms of the loan. There are loans that are paid monthly, semi-annual or annual.

In the end, remember to reach out to experts that would help you score the right cattle loan for you. There are many banks, lenders, and brokers alongside the USDA that could ensure you the right funding for your ranches and dairy farms in order to continue producing the best quality products from high-quality cattle.

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