FSA Loan Program Transfers Farmland to the Next Generation of Farmers
Adrian J. Polansky, USDA Farm Service Agency (FSA) State Executive Director, reminds landowners that the Land Contract Guarantee Program is available to landowners who wish to transfer farm real estate to the next generation of farmers and ranchers.
The Land Contract Guarantee Program provides a new approach for landowners willing to sell their land to beginning or socially disadvantaged farmers or ranchers because it reduces the seller's financial risk if the buyer defaults on the contract payments. The buyer must provide a minimum down payment of five percent of the purchase price, plan to operate the farm, and demonstrate the ability to make the land contract payments.
The national program offers two options, one that guarantees up to three annual installment payments on the contract and one that guarantees 90% of the unpaid principal of the contract. Guarantees can be used for financing the purchase of a farm with a purchase price up to $500,000 on a new land contract.
"Landowners can use any escrow agent that meets the program qualifications to service the land contract," said Polansky. "Landowners interested in the Land Contract Guarantee Program can contact their local FSA farm loan office to obtain a list of available nationwide escrow agents that can be used with this program," he said.
FSA credit programs are designed to provide credit to eligible producers when conventional or commercial credit is not available or does not meet their credit needs.
"FSA programs create opportunities for farmers and ranchers - the backbone of our rural economy," said Mr. Polansky.
For more information about the Land Contract Guarantee Program contact the local County FSA Office. Additional information can also be found on the web at www.fsa.usda.gov/ks in the Newsroom under Fact Sheets
MOST VIEWED STORIES
Walnut Township recall coming; Friday mtg erupts in arrest
Sabetha woman arrested in business burglary
Effingham teen facing child sex crimes charges
Severe storms move through NE KS
Rural Horton man charged in alleged beating
Document forgery alleged in ATCO's Walnut Township
Severe storms reported Tuesday in NE KS
Two Brown Co officers honored for their bravery
Atchison man nabbed for neighbor's 4 wheeler theft
Meriden man bound over on rape charge
KS prepares for severe weekend weather
Former AG Schmidt running for KS' 2nd Congressional District
Tornado damage surveyed in NE KS
Richardson County Deputies busy during special enforcement
Beef Barn replacement planned in Jefferson Co
NVCH receives $415,000 grant for expansion project
KS replacement plates see long wait times
Atchison's BC names Educator of the Year
LATEST STORIES
Winning lottery ticket sold in Falls City about to expire
Trail rides ending at Indian Cave State Park
Atchison's BC names Educator of the Year
Document forgery alleged in ATCO's Walnut Township
Two Brown Co officers honored for their bravery
Tornado damage surveyed in NE KS
Road, railway repairs, underway in Atchison this week
KS replacement plates see long wait times