Grants for Buying a Farm
There are many sources available to help farmers purchase farmland. State Aggie Bonds were created as a partnership between states and the federal government to assist farmers with the purchase of land, and other state and federal loan, tax incentive and grant programs exist for farmers in America. In addition to these programs, alternatives available to today's farmer include crop sharing and lease with option to buy or right of first refusal.
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State Aggie Bonds
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Many states offer Aggie Bonds to help farmers purchase land.
farmland image by Lijuan Guo from Fotolia.com
Many states currently offer Aggie Bonds. Aggie Bonds help farmers purchase farmland and equipment through a federal and state subsidized loan program. The Council of State Agricultural Finance Programs has an index of loan and grant programs available in each state, including a category for Aggie Bonds and interest grants. Interest grants allow farmers to collect grants instead of tax credits. In addition to Aggie Bonds, some states also offer guarantee loan, direct loan, and loan participation programs to assist farmers with the purchase of farm land. Nebraska offers a Beginning Farmer Tax Credit Program which helps farmers buy property by offering the real estate seller a tax credit for selling to a beginning farmer. Nebraska also offers the Nebraska Investment Finance Authority Aggie Bond, which since the 1980s has been helping new farmers buy farm land. Programs like these are available on a state-by-state basis to assist farmers.
Federal Aid for Farm Purchases
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The USDA offers a Downpayment Farm Ownership Loan Program.
The Farm image by bonjo from Fotolia.com
The United States Department of Agriculture offers a Downpayment Farm Ownership Loan Program. It is a federal program which helps beginning farmers and ranchers with the down payment to buy a farm or ranch. This program also facilitates a referral system that connects retiring farmers with new farmers, helping transfer farmlands from one generation to the next. Another program run by the USDA is the Direct Farm Ownership and Operating Loans program, which helps new farmers establish credit and achieve financial success. The USDA also offers the Guaranteed Farm Ownership and Operating Loans Program, which is set up to assist families with credit for the purchase of a farm.
Six Other Ways to Secure Farm Land
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Other ways to procure farmland include crop sharing.
Bean Farmers on a Hillside. image by Scott Griessel from Fotolia.com
The National Sustainable Agriculture Information Service (NSAIS) offers a downloadable booklet entitled Finding Land to Farm: Six Ways to Secure Farmland. The six ways the booklet discusses are crop share, cash lease, long-term lease, lease with option to buy or right of first refusal, fee title purchase with seller financing, and fee title purchase with Agricultural Conservation Easement. These are all viable ways to finance farming. On the NSAIS website, you can find articles about agritourism, agroforestry, renewable energy opportunities on farms, information about selling to restaurants, and community-supported agriculture. You can also find more than 30 pages of grant programs for different aspects of farming. Their listings are up to date and worthy of perusal if you are looking for farm grants of any kind. The NSAIS has a farm start-up page with information about starting farms, crops, livestock, pests and many resources specific to the new farmer.
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Related Searches
References
- National Council of State Agricultural Finance Programs
- Nebraska Department of Agriculture: Beginning Farmer Programs
- United States Department of Agriculture: Downpayment Farm Ownership Loan Program
- United States Department of Agriculture: Farm Loan Programs
- National Sustainable Agriculture Information Service: Six Ways to Secure Farmland
Resources
- Photo Credit norwegian farmland image by Inger Anne Hulbækdal from Fotolia.com farmland image by Lijuan Guo from Fotolia.com The Farm image by bonjo from Fotolia.com Bean Farmers on a Hillside. image by Scott Griessel from Fotolia.com
