After listening to the concerns of young and beginning farmers, Farm Credit of Western Arkansas and other financial institutions are offering lending programs specifically for young and beginning farmers.
Farm Credit’s Young and Beginning Farmer Program includes:
• Adjusted credit standards for young and beginning borrowers
• Interest rate discounts up to .25 basis points for any loan as long as the borrower is classified as a young or beginning borrower
• Full payment of fees in connection with any lender-guaranteed loan program if loan approval dictates that a loan guarantee is warranted
• Farm and financial management education program participation
• Annual farm and financial plan meeting
• $500 first-time buyer credit for estate purchase
These program provisions are provided to small and minority farmers as long as they qualify as young and beginning farmers, as defined below. This program also includes support for minority outreach programs and education.
The U.S. Department of Agriculture’s (USDA) Farm Service Agency (FSA) makes and guarantees loans to beginning farmers who are unable to obtain financing from commercial lenders. For further information about the FSA Program, visit a local FSA office.
Young and Beginning borrower classifications are determined as of the date a loan is originated, or closed, as follows:
1. Young Farmers – farmer, spouse, partner, and stockholder-owner involved in the farm or ag business who is age 35 or younger.
2. Beginning Farmers – farmer, spouse, partner, stockholder-owner involved in the farm or ag business who has never farmed or has been farming 10 years or less.
3. Small Farmers – any farmer or entity that produces less than $250,000 in gross farm income annually.
Farm Credit reports a great response to the Young and Beginning Farmer Program. The new guidelines have helped make a difference for a number of young farmers just getting started in agriculture. The Young and Beginning Farmer Program offers exciting possibilities. Look into the opportunities available through financial institutions near you.
Savannah Dickinson is a Loan Officer, in Siloam Springs, Ark., with Farm Credit of Western Arkansas.
