A New Farmer is:
New Farmer Loans are for applicants who intend to farm full-time. A full-time farmer is a person who devotes most of their time to farming or derives most of their income from farming operations. A down payment or equity contribution equal to 15% of the total project cost is required from the applicant.
LOAN RATE AND AMOUNT
Interest Rates: Fixed at
6% per annum
Farm Ownership and Improvement Loans
Farm Operating Loans
1 - Maximum loan amount of $100,000 may be used for a Farm Ownership and Improvement loan or a Farm Operating loan, or a combination of both types of loans.
Micro-Loans are also available for New Farmers, however, theses loans are restricted to operating loan purposes only. The maximum loan amount is $25,000 and the maximum term is 10 years. The application process minimizes paperwork and the loan approval process is expedited.
Loan applications may be obtained from any Agricultural Loan Division Office. Loan Officers are available to provide assistance and guidance on the loan process. In order to be eligible for a direct loan, applicants must be denied credit from two lenders, which include banks, savings and loan associations, credit unions, mortgage loan companies, the Farm Credit System and/or the U.S. Department of Agriculture.
A private lender may pursue a participation loan or insured loan on behalf of the applicant. Under these circumstances, the private lender will work in conjunction with the Division on the loan application.
As part of the application process, aspects such as repayment ability, collateral, capital, economic and/or environmental conditions, credit history, and other factors will be taken into consideration. Acceptable applications are presented to the Board of Agriculture for final approval, with the exception of Micro-loans, which may be approved by the Chairperson of the Board of Agriculture.
For more information, call or visit one of our offices.