It's exciting that you're moving forward in your farming journey and considering purchasing farmland. Here are a few things you should know as you move forward on your land search:
Grants typically are not used to purchase land. Grants are used to fund active farming operations, rather than to acquire assets or real estate.
Loans are your best bet for purchasing land, though sometimes you can also work with equity investors to purchase land.
Be wary of getting too attached to one land ownership opportunity. Keep an open mind as you look for parcels of land to acquire, and be sure to start looking well in advance of when you need to purchase the land. It is very difficult to orchestrate competitive land purchase financing with less than 30 to 60 days of advanced preparation.
There are some tax credit and loan guarantee opportunities that can make it cheaper for you to take on a loan to purchase land.
A note for start-up and beginning farmers
We celebrate your decision to start farming, and we want to help you navigate the process as smoothly as possible. It is very important to keep in mind that for farmers who are just starting out, it can be difficult to acquire financing to purchase land. This is unfortunately one of the biggest obstacles new farmers face.
We recommend that new farmers orient toward securing a rental agreement on a piece of land and getting at least 2 or 3 years of farming experience before applying for a loan to purchase land. Most agricultural lenders will require this farm management experience before they will make a deal with a beginning farmer.
Let us know if you have questions at [email protected]