Oftentimes, farm loans are difficult to access for young or beginning farmers. Many agricultural loan programs have proven effective in financing farmland – FSA (Farm Service Agency) loans for example – yet now there is an additional, promising solution.
With the Senate passage of the Farm Bill, also came the potential for a new amendment – the Casey-Harkin-Johanns Microloan Authorization Amendment – that offers young and beginning farmers up to $35,000 to get their agricultural operation up and running. This amendment has the power to allow young and beginning farmers to get the ball rolling and offers a plan to effectively realize their number one biggest concern: financial capital to start and sustain their farm businesses.
The Casey-Harkin-Johanns Microloan Authorization Amendment offers new and beginning farmers promising potential including:
- Less heavy paperwork
- An extended payment period
- Low-interest farm operating loans for military veterans
- A quicker turnaround in profit (fingers crossed!)
To be eligible for such government backed farm loan programs you must classify as a beginner or new farmer. To qualify you must:
- Have not operated a farm or ranch for more than 10 years
- Not own a farm or ranch greater than 30 percent of the median size farm in the county as described by the most recent Census for Agriculture
- Meet the farm loan eligibility requirements of the program to which you are applying
- Heavily participate in the farming operation
The number and types of farmland financing programs vary for new and beginning farmers. It’s good to be aware of your options so you’re able to get the farm loan that’s best for you and your farming operation. Sometimes, however, a government backed loan isn’t going to cut it. If you’re not able to acquire a government backed loan – USDA loans or FSA loans – or if these ag loan programs are not a good fit, contact us to determine a better solution. A part of our focus and concentration is getting beginning farms, ranches, and young producers the agricultural loans they need to get started with their business.