Credit Services — Loans and Lines of Credit
KBMN and UPI also provide competitive financing programs and services including both fixed and variable loan rates. Short-term loans are available for livestock, general farm operating expenses, crop inputs and revolving lines of credit. Producers that are expanding their operation, adding buildings, buying equipment or purchasing real estate may also qualify for intermediate and long-term loans. Producers with livestock marketing agreements with UPI receive discounted loan rates.
Livestock, Energy and Input/Feed Risk Management
KBMN and UPI can also provide livestock, energy and input/feed risk management services. These services help producers protect themselves against significant price changes in volatile markets and may allow producers to operate on fairly predictable margins. The services offered include futures/hedging agreements, packer contracts and retail brokerage services. UPI makes margin calls on the producer’s behalf for some livestock services. UPI also offers the flexibility for producers to use these services with much smaller volumes than what is available through commodity exchanges.