Loans for Beginning Farmers

Definition

States that have Aggie Bond Loan Programs for beginning farmers and ranchers, 2010. Aggie Bond programs provide beginning farmers and ranchers with low-interest loans for business start-up.

Description

Starting a farm requires high upfront costs that make agriculture start-ups cost prohibitive for many individuals. Federal legislation allows states to offer tax-exempt bonds through Aggie Bond programs, which provide beginning farmers with low-interest loans, bringing down the barrier to entry. Through these programs, states can assist beginning, first-time farmers and ranchers to purchase land, farm equipment, farm buildings and breeding livestock. Currently 17 states have active Aggie bond programs. These programs are targeted by limiting applicants’ farm size and by limiting the program to beginning farmers. Federal legislation has supported the expansion of this program in recent years by increasing the maximum loan amount and adjusting the amount for inflation.

For more information visit the National Council of State Agriculture Financing Programs.

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Loans for Beginning Farmers

Source

“Index of U.S. States’ Ag Finance Programs.” Des Moines, IA: National Council of State Agricultural Finance Programs, 2010.