New Program Benefits Both Buyer and Seller of Ag Land

New Program Benefits Both Buyer and Seller of Ag Land

New Program Benefits Both Buyer and Seller of Ag Land

I’m KayDee Gilkey with the Northwest Farm and Ranch Report.

A challenge for beginning farmers and ranchers is the purchase of ag real estate. The Farm Service Agency recently announced a new loan program specifically for beginning, minority and women farmers that should be attractive to any retiring farmers looking to sell their land to new farmers.

Melissa Cummins, Washington State Farm Service Agency’s Farm Loan Chief, shares more details about the new program that reduces the financial risk to the seller due to buyer default on contract payments.

Cummins: “What it is for is a guarantee, for the seller of the land. There are two different options they can choose. One is a payment guarantee, up to three payments, and also can cover taxes and insurance if those are missed. The other option is an actual guarantee on the unpaid principal portion of the sales price.”

Guarantees can be used for financing the purchase of a farm with a purchase price up to $500,000 on a new land contract. The buyer is required to pay a minimum down payment of five percent of the purchase price, plan to operate the farm and be able to project the ability to make the land contract payments.

Cummins: “So we are hoping that landowners who are heading towards retirement, will look at this very favorably as a way to help new farmers get started.”

I’m KayDee Gilkey with the Northwest Farm and Ranch report on the Northwest Ag Information Network.


Additional information, including a complete list of eligibility criteria and application materials may be obtained through the FSA website at www.fsa.usda.gov or your local Farm Service Agency office.  

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