While this all might seem complex, it does not have to be. At a minimum, the farmer should at least have a written promissory note for all loans entered into with friends and family that have the basic terms – the parties, the amount, the timeline, and the repayment terms. Issues like secured and unsecured loans, acceleration clauses, prepayment penalties, and so on can be helpful to discuss but they are not essential to include if only seems to complicate matters or if the parties together decide they aren’t concerned about these nuances. A promissory note can be as short as a couple of paragraphs. Ultimately it’s just helpful to put your heads together and be sure you know what each other expects. This will help prevent any disputes and help resolve any issues down the road, which is ultimately the fundamental purpose of the promissory note.