Poultry Farm Loans: Business Loan Application Process

The business loan application process for poultry farmers can feel daunting, especially since it involves working with an integrator. However, navigating the process is easier with the right information and experienced lending partners.

Getting a Poultry Farm Loan

First Financial Bank has extensive experience working with commercial poultry farmers and the agricultural industry, which means you’ll be in good hands. In fact, our loans have helped create close to 500,000 jobs in the poultry and egg industry. Joining this critical industry will help the U.S. economy and provide food for millions of people. Additionally, you could help build a solid future for yourself and your family. Poultry sales in the U.S. climbed by 67% between 2022 and 2023, so there is a lot of room to make a healthy profit.

Understanding some of the steps in the process can help get you on the right path.

Step 1: Research to Build Your Business Plan

The first step to acquiring a loan is to write out your business proposal. Do your research. This includes speaking to other farmers who work with the poultry integrator company you’ll be working with to confirm your understanding of how it works. Be sure you’re aware of all the pros and cons. For instance, any business can have highs and lows, and you will need to have some cash in reserve for any low periods.

Step 2: Establish a Relationship with the Integrator

Next, you’ll need to have an agreement with a poultry company, otherwise known as an integrator. After all, without an agreement in place, how can a lender provide financing for birds? Work with your attorney to carefully review the terms and conditions of the contract you’d be signing. Be aware that most major integrators will require your farm to be relatively close to one of their complexes. Usually, this ranges from a 30-to-50-mile radius.

Step 3: Complying with Laws, Regulations, and Other Requirements

Unless you’re purchasing an existing poultry farm, you’ll want to ensure that the construction process meets all local and state laws regarding environmental impacts and zoning. Additionally, your chosen company can provide you with equipment recommendations and poultry house design requirements. Always be sure to follow any recommendations the company gives you. If you are buying an existing poultry farm, the structures and procedures should already be consistent with the integrator’s agreement. If you purchase that farm, you may choose to work with the same integrator or another integrator in the same area, so build your plans accordingly.

Step 4: Partner with a Poultry Lender Who “Gets It”

As you are working to complete this process, contact your local First Financial Bank Lender to begin the loan process. Unlike other lenders, we’ll even come to you. After you’ve completed your application, we can work with you to understand and navigate the business loan underwriting process. As an FSA-approved and SBA Preferred Lender, we have several options available to help you. We’ve been in boots like yours and understand the ins and outs of poultry farming. We have the expertise to not only help you financially but also to answer questions that directly pertain to the poultry industry.