This is the first article in a three article series which explains the time difference between financing land versus a vehicle.

Oklahoma Farm Loans – Why does it take longer to get an Oklahoma Farm Loan than financing a new pickup?

Here at we specialize in providing Oklahoma Farm Loans. One of the main questions we get asked is basically; How come I can walk into a dealership and buy a new pickup and drive off the same day, but when I need a farm loan for a farm I bought at an auction yesterday it takes me 2 weeks to close my farm loan?

This is a great question. The complete answer is extremely long and complicated but I will give you three common sense reasons. The first reason will be included in this article with the next two to follow in their own articles.

1) Determining value (appraisal) for an Oklahoma farm loan versus a pickup.

Say you buy a farm in Eastern Oklahoma from a realtor or attend a farm sale in Northwestern Oklahoma and purchase 400 acres at a land auction. What is the farm worth? Well you have to look at of course location, location, location. Also is this ground pasture, cultivated? Does it have water? Are the fences in good shape? What about improvements? Does it have a barn on the property, an older house, a new home, corrals, grain bins, irrigation…. this list goes on and on. Because of all of these factors it makes it hard as a farm loan lender to determine a true unbiased value for the farm. Each farm, even just across the road, can be extremely different due to many different factors.

Now on that same afternoon you walk into your Oklahoma Ford truck dealership and want to purchase a new Ford F-250. What is the value of it? Guess what, the price is right on the sticker as well as a list of how it is equipped. I as a lender know exactly what it is worth. Okay that was easy. But, you decide instead to buy the used 2005 Ford F-250. Well now as a lender I just look at several different national published guides that will show me a value for that vehicle.

The time it takes to determine value is extremely different between the two above examples. For the Oklahoma Farm Loan I have to hire an appraiser to review the entire 400 acres and give me a report as to value. On the Ford F-250 pickup I simply look at a nationally recognized pricing guide. This time difference is one of the main reasons why it takes longer to get a Oklahoma farm loan.

Written by Todd P. McCue, CEO provides land loans, farm loans, ranch loans, recreational land loans, hobby farm loans and raw land loans. With, you will receive free pre-approval, low long term rates and experts with answers to all of your land loan questions.

Please visit our website at or call a specialist toll free 1-888-744-4524.