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Buying first piece of ground: How to go about it?
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roush9799
Posted 10/17/2018 06:56 (#7051241 - in reply to #7051106)
Subject: RE: Buying first piece of ground: How to go about it?



West Central IL

FSA, cheap interest, but lots of paper work, and they are slow, but overall worth it.  They normally will only go up to 50% of the loan, so you will need another lender such as Farm Credit to pick up the other half.  You may also need a bridge loan for the FSA half, which you could also get from farm credit until the FSA money comes through.  FSA also has a borrowing limit.  

If your under 40, Farm Credit has a young farmer program, You can get a reduced rate on operating loan and some other benefits.  Also, you have extra work each year, but you do the same work for them and can send it to the FSA office to satisfy them each year.  (balance sheet, crop projection, etc.)

Also, if you've never sold any crops or livestock in your name, you get a reduced crop insurance rate for your first 3 years of farming.  I see you rented from them last year, so you would still be eligible for the next 2 years, and maybe you're already getting the reduced rate.

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