Hog Farm Financing in McKinney, Texas: Find the Right Loan for Your Operation

Scan the list below, match your project type — construction, equipment, working capital, or debt restructuring — to the guide that fits, and go straight to the lender comparison inside it.

What to Know Before You Apply

Commercial hog farming in McKinney, Texas puts you in a state with strong agricultural lending infrastructure but also real competition for capital. Collin County operations typically need financing across three distinct buckets: long-term real estate and construction debt, equipment and biosecurity project loans, and revolving working capital for feed, livestock purchases, and veterinary costs. The product that fits depends on which bucket you're filling — and confusing them is the most common mistake producers make.

Quick-reference comparison

Need	Best product	Typical rate (2026)	Term	Max amount
Facility construction / expansion	Farm Credit term loan or SBA 7(a) real estate	7–9% (Farm Credit); 8–11% (SBA)	Up to 25 years	$5M (SBA); negotiated (Farm Credit)
Equipment (ventilation, feeders, manure systems)	Equipment financing or SBA 7(a) equipment	7–10% (good credit)	Up to 10 years	Self-collateralizing
Feed & livestock working capital	FSA operating loan or business line of credit	FSA direct rates vary; LOC 10–15% APR	12 months (LOC); up to 7 years (FSA)	$400K (FSA direct)
Land purchase	Farm Credit or conventional land mortgage	7–9% (Farm Credit)	20–30 years	$600K (FSA ownership)
Debt restructuring	Refinance via Farm Credit or SBA 7(a)	Depends on existing rate	Matches new term	Up to $5M

Construction and facility loans are the largest commitment most hog producers make. Farm Credit associations — roughly 67 operate nationally — typically price agricultural term loans at 7–9% APR in 2026 and will amortize land-secured debt over 20–30 years. SBA 7(a) loans go up to $5,000,000, carry rates of 8–11% APR, and allow up to 25 years on real estate. The SBA guarantees up to 85% of the loan, which is why participating lenders can approve operations that a conventional bank might pass on. You'll need at least 24 months in business and a 640+ FICO to get through the SBA underwriting door; 680+ unlocks the better pricing tiers. Lenders will also want to see a debt service coverage ratio of at least 1.25x and will cap total debt service at roughly 25% of gross monthly revenue.

Equipment financing — ventilation systems, automated feeding equipment, gestation crates, and manure handling infrastructure — moves faster than any other product. Because the equipment itself serves as collateral, approvals routinely come back in 1–5 business days. Good-credit borrowers (680+ FICO) can expect 7–10% APR; plan on a 10–20% down payment. The 2026 Section 179 deduction limit sits at $1,220,000, so larger equipment purchases often make sense to accelerate on the tax side as well. Financing for manure management systems frequently qualifies under standard equipment loans, though some USDA conservation programs offer cost-share grants that reduce the principal you need to borrow — worth checking with your local NRCS office before you commit to a loan structure.

Working capital is where hog producers get squeezed hardest. Feed prices and livestock costs are variable, margins are tight, and a disease event can flip cash flow negative fast. FSA direct operating loans top out at $400,000 and require 125% collateral coverage, but their rates are competitive and terms run up to seven years — a better fit for planned seasonal draws than emergency cash. Business lines of credit through commercial banks run 10–15% APR and give you more flexibility but less runway. Avoid unsecured short-term working capital products (15–30%+ APR) unless you have a specific, high-confidence revenue event to repay against. For a broader look at how McKinney-area producers structure seasonal input financing, the operating loan and production credit options at farmoperatingloans.com cover FSA paths and line-of-credit structures in detail.

Refinancing existing hog farm debt makes sense when you can drop your rate by 1.5–2 percentage points or when you need to consolidate short-term equipment notes into a single long-term facility. Check your collateral position first: conventional land mortgages typically lend at 70–75% of appraised value, and if land values in Collin County have risen since your original note, you may have equity to work with. Producers in neighboring markets like Amarillo and Arlington face similar refinancing dynamics, so rate benchmarks from those markets transfer reasonably well.

Before any application, pull all three business credit reports — roughly one in four contain errors that suppress your score — and line up 12 months of bank statements, two years of Schedule F or farm income tax returns, and a current balance sheet. Lenders reviewing hog farm applications will scrutinize herd inventory values, manure management compliance status, and any pending environmental permits alongside the standard financial package.