We are pleased to share news of the launch of a new financing program through the USDA Farm Service Agency (FSA), called the Land Contract Guarantee Program. As of January, the FSA will be offering loan guarantees to eligible farmers to buy and operate family sized farms. The focus of the program is to reduce the financial risk to sellers, who wish to sell agricultural property to a beginning farmer or a farmer who is a member of a "socially-disadvantaged group". Groundswell has been working hard to develop new farmer training opportunities, but without financing options that are compatible with the scale of farming they are interested in, these new farmers wouldn’t be able to continue growing in our area.
In some places in the country, the purchase of farmland through land contracts is a key mechanism for land succession, and we see this Program as a wonderful opportunity for both, landowners and new farmers in Tompkins County and Central New York. If you are beginning to plan for the transition of your estate, or selling property, we hope you will take the time to understand how this financing option works. You can find more information at www.fsa.usda.gov.
What does this mean for beginning producers and landowners?
