Country Amateur Rural Financing

Several financing options are available to those seeking to purchase a homestead or farm. Options include self- and owner-financing, rural loans, and governmental grant programs.

( Photos by Rural 1st)

How to Afford Your Dream( Rural) Property With the Right Financing Option

By Mara Watts

Financing rural land, whether for a farm or homestead, can often feel like trying to navigate a corn maze.

Between self-financing, rural land loans and government grant programs, there are plenty of options available to those seeking to secure rural property for their homesteading or farming dreams.

Self- or Owner-Financing the Property

When acquiring new rural land, self- or ownerfinancing are two options worth considering.

If cash is readily available, it can be used to purchase property, farming equipment and other homestead related items.

On the other hand, owner-financing, also known as seller financing, offers a more flexible, private option. In this arrangement, the buyer makes payments directly to the seller over a predetermined period of time.

Consider a Farm or Homestead Loan

A farm or homestead loan is another option for those looking to finance a rural property. Loans provide the necessary funds to purchase land, equipment and other essential farming needs.

To learn more, representatives from Farm Credit Mid- America and Rural 1st shared the types of loans available, and what a borrower needs for the qualification process.

Types of Loans Farm Loans

According to Gary Book, director of retail credit underwriting at Farm Credit Mid-America, financing tools are available for young and beginning farmers.

At Farm Credit Mid-America, a wide range of agricultural loans are offered to help farmers in 391 counties in Arkansas, Indiana, Kentucky, Missouri, Ohio and Tennessee. Agricultural loans offered include farm real estate loans, operating loans, farm improvement loans, livestock loans, farm vehicle loans, leasing and equipment financing.

“ We believe that the future of agriculture depends on a financially secure generation of young and beginning farmers,” he explained.“ The Growing Forward program helps reduce the barriers of entry for first-time farmers by providing access to farm loans and financial education opportunities they need to build a thriving operation.”

To participate in the Growing Forward program, farmers must have less than 10 years of farming experience, complete a loan application, submit a five-page business plan and attend at least one Know-to-Grow conference.

8 AcreageLife January 2025 AcreageLife. com