Loan programs available for purchasing agricultural land include the U.S. Department of Agriculture's beginning farmer and rancher development program, direct and guaranteed farm loans, microloans and the down payment loan program, according to National Sustainable Agriculture Coalition. Farm Credit System institutions, private banks, and the Farm Service Agency also offer loans to purchase land.Continue Reading
The Farm Credit System is a nationwide organization composed of 80 lenders that are independently owed and operated and are located across the United States in various locations, states the Farm Credit System. FSC lenders offer rural home loans, land loans and short-, intermediate- and long-term agricultural loans for the purchase of real estate and land.
Microloans offered by the USDA are designed to help small and beginning farmers finance the purchase of agricultural real estate, states the National Sustainable Agriculture Coalition. The down payment loan program helps beginning farmers and ranchers and socially disadvantaged applicants, such as women, minorities and veterans, purchase land. Applicants are required to make a down payment equal to 5 percent of the purchase price of the land and obtain a private loan for 50 percent of the price; however, the USDA's Farm Service Agency guarantees 95 percent of the loan with the private lender.
Bank of America is a private lender that offers loans for the purchase of agricultural real estate for farming and ranching purposes, according to Bank of America.Learn more about Personal Loans