Beginning Farmer Down Payment Loans

This program is sponsored by the FSA (Farm Service Agency) and is designed to assist beginning farmers with the purchasing of farm real estate.

Benefits and Features

• A beginning farmer is defined as someone who must have operated a farm or ranch for less than ten year; materially and substantially participate in the operation; agree to participate in special training programs; not own property greater than 25% of average farm acreage in their county; and demonstrate that they can't get started or continue without FSA's help.
• Requires only a 10% owner cash down payment.
• Can purchase a farm valued up to $250,000.
• FSA will finance up to 40% of the purchase price or appraised value, whichever is less. The term of the loan is 15 years at a fixed interest rate of 4.0%.
• Houghton State Bank will finance up to 50% of the purchase price or appraised value, whichever is less, at a low interest rate fixed for a specified period over a maximum amortization period of 25 years.