Beginning Farm & Ranch Loan Program
Application and Qualifications
- The beginning farmer/rancher must have a net worth of $477,000 or less.
- The beginning farmer/rancher may not have previously owned any substantial amount of farm/ranch land. Any parcel of land is substantial farm/ranch land unless the parcel is smaller than 30 percent of the median size of a farm or ranch in the county the parcel is located.
- Beginning Farm/Ranch Loan Program funds may be used to purchase agricultural land, agricultural improvements, and depreciable agricultural property.
- Property may be purchased from relatives only through third-party lenders.
- The loan maximums under existing federal laws are:
◦$477,000 for agricultural land and improvements.
◦Of the possible $477,000, no more than $125,000 can be for depreciable agricultural property, of which no more than $62,500 can be for "used" property.
There is no minimum loan amount, under the program. The financial institution will make a credit evaluation of the beginning farmer/rancher, establish collateral deemed necessary and, with the beginning farmer/rancher, arrange the terms of the loan or contract.
Application to include:
- Completed application form - Follow link at bottom of page.
- Current financial statement
- Background letter
- Non-refundable $50 application fee
There is no formal or defined application period. The loan program is ongoing, therefore an application may be submitted at any time.
Published: Thu Oct 13 09:11:00 MDT 2011.
Last Modified: Thu Apr 16 16:38:03 MDT 2015