How to Finance a Farm

To start your own farming business can offer personal rewards that would give you the freedom of working with the boss as yourself too.

However it requires a lot of planning and if you are tight on budget, there are numerous options you can choose from to help you finance your farm as a beginner.

Go for State Programs

You can prioritize approaching the office of the Department of Agriculture in your state. You can choose to apply for their beginner farmer loan program which allows the government to help you with having the tax-exempt status, perfect for first time farmers. You can get this loan to help you start with your farming endeavor and get your equipment and other tools you need for farming. This kind of financial assistance has a goal to provide lower interest rates to the loan applicants.

Approach the Farm Banks

The entire US has about 2,500 farm banks that can offer you a wide variety of loans whether you are a small or big time farmer. They can offer you short term operating loans which would last less than 12 months in duration, sufficient to provide you with all your yearly expenses such as for fertilizers and seeds. Their intermediate term loans last about two to five years that include the capital expenses like the equipment and the livestock. There are long term loans that are offered which may last for at least ten years. This can be perfect for the major construction and structures of real estate.

Get Involved With the Farm Credit System

This is a network that is composed of about a hundred lending institutions that are federally chartered. They specialize in rendering credit and other loan related services to farmers, ranchers and even those harvesters. They offer similar loan categories as the farm banks but the difference is that they offer credit lines that revolve. This means they are tailor fit to your borrowing situation with the repayment tied up to the flow of the cash.

USDA’s Farm Service Agency

This agency is also known as the FSA which renders numerous types of farm loan programs which include the traditional operating types and those that are perfect for the beginning farmers. They also have a mediation program for any possibility of agricultural disputes. What is good about the FSA is that they offer direct farm ownership and loans for those farmers who are unable to get commercial credit from banks, the Farm Credit System, and other lending bodies. These are the borrowers who are not qualified for the typical type of loans since they also have insufficient starting funds. These are also perfect for those farmers who just recently got affected with a natural disaster or whose budget is just enough for day to day farming operations.


  • KEVIN CRAIG BOOYSEN said on March 14, 2011
    hi cape town south africa, iam starting farming business,and need more information,how to get a loan ,pigs and rabbits
  • Malcolm Abdullah said on November 9, 2015
    I want to start a goat and chicken farm in South Carolina. I am a US Army veteran and I would like to have information on obtaining a USDA grant and loan. I need financing for land and startup capital.


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