Single-purpose agriculture financing

October 2021

Single-purpose agriculture financing

Rely on Key for your equipment and storage needs

If you’re looking for an innovative approach to staying competitive while preserving your cash and capital resources, consider working with Key. As an industry leader in financing agricultural equipment and storage, we bring 28 years of trusted knowledge to help you grow your business, with confidence.

Single-purpose storage expertise

Scores of our clients have discovered how financing with Key supports their needs specific to single-purpose storage construction. Compared to a traditional real estate mortgage, Key financing products may offer a host of other potential benefits, too, including:

  • 100% financing. Bundle equipment, sales tax, labor, electrical, ventilation, concrete, and any other project-related costs into one convenient plan.
  • Competitive pricing. Enjoy the ability to lock in low rates and improve forecasting plus lower financing fees.
  • Flexible payment frequency. Choose options to align with seasonal revenues and cash-flow requirements.
  • Reasonable amortization. Match schedules to your budget needs.
  • Operating or capital lease and loan options. Optimize potential income tax advantages and balance sheet management.
  • Cost savings. Conserve cash with no down-payment requirements and significantly lower financing fees.
  • Convenience. Save time and processing encumbrances with one source for capital and structuring expertise. 

Key financing: why it’s unique, how it works

We understand your business and the nuances associated with single purpose storage financing, specifically CA storage and storage solutions for apples, potatoes, and onions. Because the Internal Revenue Service (IRS) may consider these and other facilities categorized under publication asset class 01.4 as personal property, different rules may apply with regard to property ownership, depreciation, and tax treatment.

That’s where our dedicated client service and structuring knowledge come into play. We designed a product with benefits that support the unique requirements of our agricultural clients. We can work with you and your accountant to develop a solution tailored to your business and scalable to support your immediate objectives and long-term goals.

Did you know?

You can have the Controlled Atmosphere (CA) storage solution you need now – quickly, easily, and cost-effectively – by using a specialized lease or loan to acquire it? You can, with Key. Because we specialize in agricultural financing, you can rely on us for alternative capital strategies to help you succeed in all economic climates.

Cost savings

Conserve cash with no down payment requirements and significantly lower financing fees.

Key Advantage

We can work with you and your accountant to develop a solution tailored to your business and scalable to support your immediate objectives and long-term goals.

A customized lease or loan

A Key financing option is structured to ensure the borrower/lessee has absolute ownership of the asset before the agreement terminates. There is no guesswork — the total cost of financing and ownership is clearly defined up front.

This product is not intended for speculation. Here’s how it works:

  • The storage site is defined by a site survey, and the legal description is used to create a ground lease of the site from you to an affiliate of Key for a prepaid rental of $100 for the duration of the ground lease.
  • The lease of the ground to our affiliate enables them to lease the ground and the storage facility back to you, allowing you to avoid a down payment and most of the costs associated with a real estate loan.
  • An appraisal may not be required, which may potentially reduce your up-front costs.
  • Because this is a net lease, you are responsible for insurance and proper maintenance.
  • Additionally, the storage solution may be considered equipment, so other collateral or encumbrances are usually not required.

How can we support your growth?

To learn more about how we can support your business, please contact us today. We look forward to working with you.

This document is designed to provide general information only and is not comprehensive nor is it legal, accounting, or tax advice. KeyBank does not make any warranties regarding the results obtained from the use of this information. Credit products are subject to credit approval, terms, conditions, and availability and subject to change. Key Equipment Finance is a division of KeyBank. is a federally registered service mark of KeyCorp. KeyBank is Member FDIC.

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