Loans for large acreages of farmland are obtained through commercial lenders, government entities, relatives or sellers who agree to self-finance the sale, according to Mother Earth News. To be successful in obtaining loan for a farm land, borrowers typically need farm experience to prove they are a good risk.
Many government farmland loan and grant programs are available through the Farm Credit Administration, Farm Service Agency and the United States Department of Agriculture Rural Development program, explains Mother Earth News. These agencies offer loans for properties throughout the United States, Puerto Rico, American Samoa, the Virgin Islands and Pacific Trust Territories, according to the USDA website.
A program designed especially for young, beginning and small ranchers and farmers is available from the Farm Credit Administration, as explained on the agency's website. Congress mandated the Farm Credit Administration to create this program in the Farm Credit Act of 1971, based on the belief that the future of agriculture in America rests upon the ability of young, beginning and small ranchers and farmers.
As of 2015, the Farm Service Agency offers direct farm operating loans of up to $300,000, according to the agency website. It also offers microloans of up to $50,000. Microloans have streamlined approval processes. They also have more lenient experience requirements, such as accepting farm labor or general business experience as sufficient for the loan approval.