Farm Loan FAQs

There is no minimum or maximum loan amount; minimum origination fee is $2,500, regardless of loan amount.

How do you describe a “farm”?

A farm is determined as an operation generating a minimum of $5,000 in gross farm income (GFI) as filed by a Schedule F of income tax returns; we do have other loan programs that may fit your needs if you do not meet this requirement. Acreage is not necessarily a factor since parcels as small as 10 acres can generate the minimum GFI when higher value crops such as tree fruit and nuts are in production.

How long does it take to close a loan?

Upon receipt of a complete loan package (excluding appraisal), 45-60 days is normal, from application to closing; time requirements by appraisers and title companies can affect closing time of an approved loan.

Can I order my own appraisal? Can you use an appraisal previously completed?

In order for an appraisal to be approved, the actual Lender must have either engaged the performing appraiser or have the appraisal assigned by the original client. The property owner cannot engage the appraiser. This procedure allows the appraiser to adequately perform an appraisal that meets our requirements.

I want to purchase a farm; how much can you lend me?

We normally lend 70% of the purchase price; for example, if you want to buy a farm that costs $100,000, we can lend you $70,000; you will need to produce the other $30,000 required to purchase the farm or pledge additional real estate with adequate equity to meet this requirement.

I would like to pay off my credit card debt and my real estate loan; can I do that with a loan with you?

We can certainly help you by consolidating debt; however, we are typically limited by our 25% cash out rule, meaning that only 25% of the loan proceeds can pay non-real estate debt such as credit cards and equipment debt. We do have some products that allow for more cash out than that.

I’ve never farmed before and want to buy some land; can you lend me the money to do that?

Yes, in most instances, we have programs that can help a 1st-time farmer purchase land, providing as much as 100% of the purchase price in conjunction with a direct loan from Farm Service Agency.

Can you give me a loan that will help settle my bankruptcy proceedings?

Generally, a bankruptcy ruling must have been discharged for at least 4 years; after that time has passed, we can proceed with a loan application from you.

Do you offer loans for horse farms?

Yes, we can. The horse farms we can lend to are typically larger breeding operations rather than boarding facilities; these operations are in an area where there are several like-kind operations. Some of our other programs may also fit your needs.

Do I have to farm my land to be eligible for your loan?

You can rent your land on a cash rent or share-crop basis and still be eligible for a loan. Your operation simply has to generate at least $5,000 in gross farm income, whether it is sales of crop or receipt of cash rent.