Beginning Farmer Programs?

[cornstalk]

Hello,

Recently we have had some good pasture land come up for sale in my area. My wife and I are wondering what is available to beginning farmers as far as any government programs, or low interest loans? Our herd size has now grown to a grand total of 11 cows, otherwise we have very little capital. Hoping to find a low interest loan of some type to aid us in the purchase of this pasture/farmland. We have a meeting with FCS in a week or two, just thought I'd see what the board had to say on this topic.

Thanks for any insight. :cboy:

 

[jerry27150]

good luck , but you don't want to ask these guys

 

[donnaIL]

around here the banks want 30% down, and then they will take in to condsiderations your assets (i.e., cows, tractors, other income).

Don't give up! If I listened to everyone here, I wouldn't be anywhere.

donna

 

[TheBullLady]

Check with your county USDA office.. they offer low interest "beginning farmer" loans. A lot of paperwork involved, and you have to have been denied a loan by two lenders before they'll consider you.

 

[Alan]

I found a small indepentant bank to loan on a 52 acre parcel of bare land. But had to show I had other income to support the loan without considering the money made from ranching. I also had to come up with about 20% down. I did do a web search for "farm loans" and got a couple of hits, but both where outragous to deal with, one place wanted $1000 to join then I could submit a loan app. for another $350. I wish I knew about the USDA program.

Alan

 

[Beefy]

the beginning farmer and rancher loan i was looking at last year wanted 10% downpayment (on land).

 

[Alan]

the beginning farmer and rancher loan i was looking at last year wanted 10% downpayment (on land).

Who was loaning the funds?

Alan

 

[Beefy]

this one was thru the FSA.

 

[cornstalk]

Hmmmm, interesting.

We do have nearly 10% to put down, depending on the selling price. Somewhat worried about what this ground will bring, it certainly isnt prime farm ground, however land has been averaging around 1500/acre in these parts.

Just thought I'd drop a line on this one too see what came about. We'll go through the motions, and hopefully someone will give us a shot at owning this ground. I wont be easily discouraged, if this particular parcel doesnt work out, there will be more.....and I'll have even more assets saved up!

Wondering, I think the interest rate is running around 6% these days. How much of a discount could one expect on a reduced rate, beginning farmer loan ? 2-3% ?

Thanks for the replies so far!

:cboy:

 

[Beefy]

it will just depend. i got a beggining rancher loan last year at about 3.65 percent for heifers. the land here i was looking at last year was 3300/acre. needless to say i didnt quite have 10% at the time.

 

[Beefy]

like another poster said, there is some paperwork involved, so dont wait around until the last minute to look into it.

 

[TheBullLady]

Capital Farm Credit right now is about 6.5 - 7.75% on a fixed rate 15-30 year. Adjustable rates are less, but obviously more risky,

The last "beginning farmer" load I closed was at 4.0%. Remember, very structured. You'll have to have a long range business plan, etc.

Yes.. don't wait if you're interested. They take awhile to process! The one I closed took 9 months to complete.

 

[TR]

Capital Farm Credit right now is about 6.5 - 7.75% on a fixed rate 15-30 year.

I just got a "dividend" check from Capital Farm Credit today.....nice chunk of change and will come in real handy too. They have their company set up as a sort of a co-op type deal where you pay like 1 or 2% of the loan amount to "purchase" your share of the company, so in effect, you own a part of the company that's loaning to you. They just added that to the loan amount, so I didn't have to come up with it all at once, but I guess over 30 years, that 1 or 2% will add up to a whole lot more for them. In any case, its nice to see a dividend check in the mail when you least expect it.

 

[Chuckie]

Cornstalk, check your pm's.

 

[cornstalk]

ok