Beginning Farmer Programs: Government Help to Buy Your First Farm

FSA Direct Farm Ownership Loans

The Farm Service Agency offers direct loans up to $600,000 for beginning farmers (those who have operated a farm for less than 10 years). These loans feature competitive interest rates and may require no down payment.

FSA Down Payment Loan

The down payment loan program provides financing for up to 45% of the purchase price, with the borrower providing 5% and a commercial lender covering the remaining 50%. Maximum loan amount is $667,000.

State Programs

Many states offer additional beginning farmer programs: Iowa: Beginning Farmer Tax Credit (5% of cash rent paid), Minnesota: Beginning Farmer Bond Program (reduced interest rates), Nebraska: Beginning Farmer Tax Credit Act.

Land Link Programs

Several states operate land link programs that connect retiring farmers with beginning farmers seeking land. These can facilitate below-market sales or favorable lease terms.