September 5, 2003
In a Federal Register published on Thursday, U.S. Department of Agriculture (USDA), Farm Service Agency (FSA) announced the availability of funding to implement the Beginning Farmer and Rancher Land Contract Guarantee Pilot Program.
The pilot program will be implemented in the following states: Indiana, North Dakota, Oregon, Pennsylvania, Wisconsin and Iowa. In each of the fiscal years 2003 through 2007, up to five loans made by a private seller of a farm or ranch to a qualified beginning farmer or rancher on a land-contract basis will be guaranteed in each of the pilot states. The intent of the pilot program is to determine if land contracts are a viable alternative for facilitating land transfers to beginning farmers and ranchers.
The pilot program is structured to provide the seller of the land a ?prompt payment? guarantee. FSA will provide a 10-year guarantee of two amortized annual installments on a land contract as well as the amount of two years? taxes and insurance.
Eligible buyers must meet several requirements. A couple of them include:
? The buyer must be a beginning farmer or rancher and must be the owner and operator of a family farm after the contract is completed.
? The buyer must also have participated in the business operations of a farm or ranch for at least three years.
For further details, go to: http://a257.g.akamaitech.net/7/257/2422/14mar20010800/edocket.access.gpo.gov/2003/03-22519.htm
Applications are now being accepted.
Staff contact: Peter Orwick, ext. 33.