What is often required in addition to a farm plan for a complete loan application?

In the context of a complete loan application for farming, a financial capability assessment document is essential. This document provides lenders with a comprehensive overview of the borrower's financial situation, showing their ability to repay the loan. It includes details such as income, expenses, debts, assets, and liabilities, and typically outlines the overall financial health of the farm operation.

Having a financial capability assessment allows the lender to evaluate the risk associated with lending. It demonstrates the borrower's understanding of their financial landscape and their preparedness to manage both the business and the loan repayment. This is critical for lenders to make informed decisions regarding extending credit and helps ensure that borrowers do not take on more debt than they can handle.

A farm plan outlines the operational aspects of the farming business, but without a robust financial assessment, the lender cannot gauge the viability of the proposed plan in the context of the borrower's financial realities. Hence, this document is often a required component in addition to the farm plan for a loan application.