NCAFA's "Ag Start" Beginning Farmer Real Estate loans can be made to buy, improve or enlarge farms. Purposes may include: Construction, improvement or repair of farm homes and service buildings; improvement of on-farm water supplies, installation of pollution controls; soil and water conservation measures to develop, conserve or make proper use of land and water resources, irrigation systems, drainage improvements, refinancing debts, establishing or improving forests and providing for production of fish under controlled conditions.
NCAFA "Ag Start" Beginning Farmer Real Estate loans can be made to individuals, farming corporations, partnerships or joint operations. The individual or entity must:
- Be unable to obtain sufficient credit to finance the actual needs at reasonable rates and terms from other lenders in their community without a Farm Service Agency (FSA) guarantee.
- Be a citizen(s) of the United States (or legal resident alien) maintaining a farming operation in North Carolina.
- Have adequate training or farming experience to assure a reasonable prospect for success in the proposed farming operation and have not had substantial farm ownership prior to application.
- Rely on farm income and such other income as necessary to provide for a reasonable standard of living considered adequate for the area and must be recognized in the community as a farmer (as distinguished from "hobby" farming.)
- Have serviced existing debts in a reliable manner.
- Have exhibited adequate management ability to carry out the proposed operation.
- Be the owner-operator of a family size farm after the loan is made.
NCAFA's "Ag Start" Beginning Farmer Real Estate loans are made at prime plus 1.00%. The rate is variable and may change quarterly. The terms for repayment will be for periods up to 30 years. A balloon payment for the outstanding principal will be due at the end of the mid year of the original loan (i.e. -at the end of 15th year on 30 year loan.)
At least one-half (50%) of the "Ag Start" loan will be made by the Farm Credit System (FCS) jointly with NCAFA. Maximum term is 20 years with a fixed interest rate to be determined at the time of the loan (NCAFA will help you contact the local FCS office.)
NCAFA's "Ag Start" Beginning Farmer Real Estate loans may be secured by liens on all the real estate owned and purchased as well as improvements and fixtures.
NCAFA's portion of "Ag Start" Beginning Farmer Real Estate loans will be limited to $1,392,000.00. Participation by FCS will increase the total loan limits beyond $1,392,000.00.