An operating loan is short-term money to cover the costs of running a farm through a season — like seed, feed, fuel, and labor.
An operating loan is short-term agricultural credit used to finance production inputs and operating expenses, commonly structured as an annual line of credit repaid from production revenue.
It bridges the gap between paying for inputs and earning revenue at harvest or sale, which is central to farm cash flow.
A grower draws on an operating line in spring for seed and fertilizer, then repays it after selling the crop.
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