The timber industry can be challenging, exhilarating, and unpredictable.
That’s something that Anthony Wender of Pine Creek Logging in Iron Mountain, Michigan knows all too well. Timber is in his blood; his grandpa, father, and uncle have been in the industry for decades. After he decided to stop cutting with them, he was on the search for bigger timber – and his own equipment. “It’s been in the family,” said Anthony. “When you grow up around it and grow up on the job site as a kid, you learn to like it. It doesn’t really feel like work.” Anthony worked with GreenStone Farm Credit Services in August to secure an equipment loan to purchase a harvester. For him, that too was simple. “It was just a simple phone call, and they helped me with the rest,” said Anthony. Now, he has the equipment necessary to grow his business and continue his family’s legacy of working in the woods. Anthony isn’t alone. GreenStone offers a variety of services and financing options to make timber dreams a reality across Michigan and northeast Wisconsin – even if you’re new to industry.
When you’re ready to take your logging operation to the next level, GreenStone can help!
Securing The Land
If you want to purchase vacant timberland as an investment, GreenStone can be of assistance.
When you’re ready to make an offer on land you intend to harvest timber from, we can provide land loan offerings including long term, fixed-rate mortgages.
GreenStone’s criteria for evaluating timber industry loan applications include repayment history, owner equity, repayment capacity, and loan-to-appraised value. And when you’re done logging the land, you can keep that land for other purposes. In many circumstances, loggers will keep the land as either recreational land for hunting or as residential property for rural homes for family members or cabins.
If You’re Young and Beginning, No Problem. We’ll help you save money.
To start a timber operation, you will likely need equipment and some start-up capital.
GreenStone offers long-term fixed rates for equipment from three to seven years including flexible payments options including skip payments during spring break-up months.
Through our CultivateGrowth program, we can offer flexibility for new loggers who may have a difficult time securing a loan elsewhere. GreenStone’s options and new programs emphasize they understand the importance of investing in the next generation of those with sawdust in their blood.
We all know the cost of fuel continues to fluctuate and parts and supplies are in short supply due to lingering pandemic-related supply chain disruptions. To keep your equipment and vehicles fueled up and fully functional, consider opening a revolving line of credit operating loan through GreenStone. This can help keep your interest expense low for day-to-day expenses, as opposed to using a fuel or credit card.
Putting Money Back in Your Pocket
Because GreenStone is a cooperative and owned by our members we serve, we give back a significant portion of their annual earnings each year to their members in the form of a Patronage check.
In March, GreenStone gave back nearly 45% of its 2021 net earnings to customers – totaling $115 million! Over the course of seventeen years, members have received $720 million dollars in Patronage dividends. As a customer, you too would benefit from Patronage program!
Get Started
There are five main things applicants need to provide for underwriting and loan approval: a Certificate of Authorized Representatives, a signed and dated application, copies of driver’s licenses, three years of federal and state tax returns, and a complete market-based balance sheet for all entities and individuals co-signing or guaranteeing the loan.
At GreenStone, we have the capability to obtain those documents both virtually and in person. Thanks to years of experience, we understand this process can be overwhelming, and our team of industry experts are happy to walk you through the process.
If you have questions about timber financing, contact one of our branches to speak to one of their timber financing experts by calling 800-444-3276 or by visiting our loan page here.
This article was originally posted in The Great Lakes Timber Professionals Association publication here.
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