![]() They are processed, funded, serviced and owned by the commercial lender, but the Farm Service Administration (FSA), a department of the United States Department of Agriculture (USDA) guarantees the loan. Farm land loans made through this program are guaranteed by the U.S. Loans can also be obtained from certain commercial lenders participating in the Guaranteed Farm Loan Programs. An interest rate cap is the highest interest rate you can be charged for the life of the loan.Ĭlick here to get matched with a lender. Variable rate loans can be packaged with or without interest rate caps. The farm land loans from any size or type of institution can encompass traditional mortgages with a fixed rate or any number of variable rate loans based on either the Prime Rate or the London Interbank Offered Rate (LIBOR) which is the interest rate that banks charge one another to borrow money. Larger banks will also have a variety of loan products for their customers. Their loan officers may have a broad knowledge of the agricultural industry in general, or they may have people who specialize in particular areas of the country or ag industries such as smaller farms or cattle ranching. Many have departments devoted solely to the agricultural customer. ![]() These services allow smaller, rural banks to be more competitive and offer a broader portfolio of loan products to their customers.Ī large commercial bank or lending institution can also be of service to an established or beginning farmer. Rural agricultural loans (including farm land loans), rural housing mortgage loans and rural utility loans. Many small, rural banks take advantage of the services of the Federal Agricultural Mortgage Corporation (Farmer Mac).įarmer Mac, similar to the more well-known Freddie Mac and Fannie Mae, is a government sponsored enterprise that is formed to provide a secondary market for They know the people they do business with and they are knowledgeable about the state of the ag industry in their area. Banks can range from small, local institutions that have the advantage of employing loan officers who live and work in the agricultural community they serve. Traditional commercial banks and lending institutions are one source of capital for agricultural loans. Whether you are a full-time farmer buying hundreds of thousands of acres to grow wheat or a part-time farmer needing a few acres to grow organic produce for a truck farm, there are a variety of farm land loans to suit your requirements. There is no minimum or maximum acreage requirement for these loans. These can be used for the initial purchase of land to start a farm, to purchase an already existing farm or for the expansion of acreage for a farm. Farm land loans are the common source of capital for the purchase of farm land. Whether you are a beginning farmer or already established, one of the largest expenditures you will have is for land. Agriculture is still big business and it takes a lot of land.Ĭlick here to get an Farm Land Loan. The farmers and ranchers of America have a proud history of working the land and providing for the health of our nation and stoking our nation’s economy. The majority of these farms are owned by families or individuals. There are approximately 2.1 million farms with an average size of 434 acres in the United States. The top ten agricultural producing states are California, Iowa, Texas, Nebraska, Minnesota, Illinois, Kansas, North Carolina, Wisconsin, and Indiana. The Great Plains of the United States from Montana and North Dakota down to New Mexico and Texas provide a large portion of the crops grown for use in the country and for export.īut not all large agriculture is centered in the states of the Great Plains. ![]() exported over a Trillion dollars in agricultural products – the largest ever in history. ![]() The United States has a rich heritage of farming from the colonists and founding fathers who helped create our country to the hard-working men and women who put 80 percent of the food on American tables today, while helping to feed the rest of the world.
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