Apply for an agricultural land loan from a major bankWhen farmers need financing, most turn to their local banks first. It's often easier to get a loan from the bank that you typically do business with. If your credit is good, you should be able to get an affordable interest rate on your loan.
Apply for direct and guaranteed loans for farm land from the governmentIf you do not qualify for a traditional loan, you don't have to sell the family farm. There are government agencies that aim to help farmers get the cash they need to be a profitable business.
Farm Service Agency offers loans to farmers to help cover costs. For example, direct ownership loans help farmers to purchase the land and livestock that they need to get started, while a direct operating loan will help to cover equipment and other farm operating costs. The National Council of State Agricultural Finance Programs lists the agricultural loan programs for each state.
Look for agricultural home loans to purchase a home and farm landIf you want to purchase land in order to run a farm, then there are a number of loans that apply directly to you.
Housing and Community Facility Programs, operated by the government offers loans to families that wish to live in rural areas. Farm Credit Services also provides loans for homes in rural and agricultural areas.
- Make sure that you understand the details of your agriculture land loan before you sign. You want to make sure there are know hidden costs involved.