WHAT PROJECTS QUALIFY FOR A BEGINNING FARMER LOAN?
Top A. Buying farmland and making improvements to farm, including buildings, tile, bulldozing. B. Machinery, but no more than $62,500 for used machinery, $125,000 for new machinery. C. Breeding livestock, but no more than $62,500 for animals that have already produced offspring, $125,000 for those that haven’t produced offspring. D. Projects to buy farmland that includes a house will be restricted to a bond amount where no more than 5 percent of the bond is used to purchase the house. Example: Total purchase price of 80 acres & all bldgs. = $125,000 Less appraised value of house -$25,000 Can loan 100 % of this amount plus 5% more $100,000 $100,000 divided by .95 (adds 5% to bond) $105,263 Maximum amount of bond for this project $105,263 (assuming no land in CRP) E. Projects to buy farmland that includes acres in CRP will be restricted to a bond amount where no more than 25 percent of the bond is used to purchase CRP acres. Example: Total purchase price of 80 acres & all bldgs. = $125,0
