Farmers and those who represent them, as well as anyone else with a knowledge of general farming practices and the history of U.S. agriculture, know that agricultural loans are critical to many farms and a central part of how ag financing has worked for many decades. Farm land financing and ag loans are what help farmers deal with fluctuating market conditions and other dynamic factors in their businesses.

Those looking for assistance and training in agricultural land loans can look to the web: many resources are available, from notes on federal programs to tips on common ag finance practices. Readers can find:

1. Links to schools where future farm managers can get specific training in getting farm land loans.

2. Independent "consulting" or training companies for agricultural land loan options.

3. More educational resources on loans for agricultural land from public forums dealing with ag finance.

Action Steps
The best contacts and resources to help you get it done

Find college or scholastic agricultural land loans programs

One way to get trained on agriculture land loan options and other financial aspects of farming is to partake in one of the many U.S. agri-finance programs from a state college or university. Browse the catalogs and departments of these giant schools to find one in your region that will educate on how to approach agricultural land loans.

I recommend: State schools like the University of Illinois offer "agri-financing" course options that include information on agricultural land loans and how to manage a farm financially. (Illinois offers these in the online catalog of its Department of Agricultural and Consumer Economics). Other schools, like the University of Wisconsin, also offer courses covering this blend of agriculture and finance.

Locate other venues for agricultural land loans training

Other independent agencies and firms also offer agricultural loan training to farm managers for figuring out the best practices for securing low interest agricultural land loans, farm bureau land loans, or other kinds of ag loans. Find out more at the accessible web pages of these consulting parties for finding reliable loan assistance.

I recommend: Get agricultural land loans and other agricultural finance training at Farm Situation, where professionals specialize in credit review and training for agri-business. Get assistance in agricultural loans from the Ferguson Group through their online outreach.

Look for more agricultural land loans info from public web forums

Another way to get informed about agricultural loans over the web is to find useful information on public web forums where those involved in farming and farm finance post about opportunities for agricultural loans.

I recommend: Check out the United States Department of Agriculture forum at Topix for posts on dealing with agricultural finance. The USDA answers questions and posts the answers online at the Farm Service Agency's site.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Agricultural loans education and training can be just the thing a farm needs to stay profitable and vibrant -- try to analyze the loan situation thoroughly before seeking help to have the best information available when preparing for the loan process.

Agricultural loans help farmers run their farms more efficiently. It can be difficult to keep up with all of the costs associated with running a farm, so farmers need low interest agricultural loans to help them stay afloat.

Fortunately, the government often steps in with low interest loans and other subsidies that help farmers turn a profit.

Farmers can use agricultural loans to:

1. Purchase farm land. Whether you are just starting out as a farmer or wish to expand your current farm business, agricultural land loans help you purchase the land you need to build a great farm.

2. Cover operating expenses. Besides needing farm land financing, many farmers also need help covering some of the operating costs. Farm equipment is expensive, but it's necessary to run the farm. With better equipment, you can cover more land quickly.

3. Help with the marketing of their product. If they want to make a profit, then farmers need to sell the product they create. This means that they need an effective marketing plan and money to pay for marketing costs in addition to farm land loans.

Action Steps
The best contacts and resources to help you get it done

Apply for an agricultural land loan from a major bank

When 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.

I recommend: Most of the major banks offer programs to help farmers out with agricultural loans. Bank of America and US Bank, for example, both offer agricultural loans to local farmers.

Apply for direct and guaranteed loans for farm land from the government

If 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.

I recommend: The 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 land

If you want to purchase land in order to run a farm, then there are a number of loans that apply directly to you.

I recommend: The 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.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  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.

Agricultural loans are the backbone of the industry. Many first-time farmers rely on these loans in order to get a farm started. Many experienced farmers also use agricultural loans to replace equipment, expand their operations or get quick financing when disaster strikes. Agricultural loans work just like any other loan in that the farmer must have good credit, collateral and the ability to make monthly payments on the loan in order to qualify.

Action Steps
The best contacts and resources to help you get it done

Subsidies

A subsidy in agriculture is money paid to farmers from the government in order to manage commodities and supplement income in order to affect the supply and costs of the specific commodity.

I recommend: The Center for Agricultural and Rural Development out of Iowa State University offers information on farm subsidies and how they are concentrated in the United States. You need to access the PDF copy of the Iowa Ag Review to see the charts referred to in the article.

Direct ownership loans

A direct ownership loan is a loan issued by the Farm Service Agency (FSA) that provides loans to farmers that are not able to qualify for a loan from any other type of financial institution because of an economic hardship or disaster.

I recommend: Government Loans offers detailed information on eligibility and requirements for agricultural direct ownership loans.

Operating expenses

Operating expenses are the continual costs that are paid out in order to keep a farm or ranch in operation, Operating expenses need to be determined before farmers apply for a loan so they know how much money is needed.

I recommend: Agriculture Online offers advice and news articles on operating expenses for different types of ranches and farms in the U.S.

United States Department of Agriculture (USDA)

The USDA is a government agency that works to assist and protect farmers. The USDA also has the job of providing quality food products to consumers by grading food and offering food safety information.

I recommend: The United States Department of Agriculture offers a variety of agricultural loan options for farmers looking to start a farm, get emergency assistance or other specialized needs.

National Council of State Agricultural Finance Programs (NCOSAFP)

The National Council of State Agricultural Finance Programs is an organization that provides farmers with the information they need to choose the right type of state loan for their farm needs as well as knowing what types of loans each state offers.

I recommend: The National Council of State Agricultural Finance Programs offers an overview of the types of agricultural loans available to farmers in specific states.

Emergency farm loans

Emergency farm loans are available for farmers that meet specific requirements of need. These requirements can include land that is part of a declared disaster area or a farm that has had a loss of 30 percent or more of its total crop, livestock or real estate.

I recommend: Gov Benefits offers an outline of what an emergency farm loan can provide and how a farmer can qualify to get one of these loans.