Today, farming is a business, and most lenders will want to see a business plan along with a completed loan application. In your business plan, you will need to project both your income and your expenses for several years out. If this is your first business, it's a good idea to have someone review your business plan to make sure it is complete, makes sense, and isn't missing any important components. You should also request a copy of your credit report in advance so you'll know if there are any problems or mistakes that need to be corrected. Other things that a lender will consider is what you personally will contribute (like cash, equipment, livestock, etc.) and how much experience you have in managing a farm.

In a publication called "The Five C's of Credit", Dennis Kauppila, a Farm Management Specialist with University of Vermont Extension, included these guiding questions for those considering a first-time farm loan:
1. Capacity: What is your ability to repay the loan?
2. Capital: What capital/money do you already have invested or available?
3. Character: What are your qualifications, experience, and management skills?
4. Collateral: Do you have assets that can be used as financial backup?
5. Conditions: What are your chances of success?

Get to know your potential lender before you submit your loan application. Learn what they look for, ask their advice, and take the time to do your homework in advance.