How to Qualify for FarmLand Loans


Starting or expanding a farm can be expensive. If you don’t have the money to fund your farm project, you can look into the farmland loans available. Although there are lots of farm loan programs, you will need to meet the lender’s requirement to get the loan. Here is how to qualify for such loans.

Although the lenders do not have the same requirements, some general requirements apply to all.

Have a business plan

You need to prove to the lender that you have planned thoroughly for your project. You should have all the important information about your plan. You should have potential demand for the products you intend to produce, and you should be able to demonstrate it.

Your business plan should also mention the financial commitments that you have already made towards the farm project. Do you already have land? How about seeds and other farm equipment? You should also have a financial goal and have plans on how to achieve the goal. Your plan should also include a detailed budget.

Organize your finances

You need to have information about the sources of your income, balance sheets, income statement, credit history, and statement of income before you speak to a lender. The lenders want to be sure that you can pay back the loan. Hence they look at your credit score as well. Most lenders will expect that you have a minimum credit score of 660.

Lenders also offer a minimum loan amount of $400,000. This means that most of them are not willing to fund small farm projects. The lender may also put limits on the location. Some offer loans for farmers in only specific states.

In most cases, they offer loans to farmers with a minimum farmland of 40 acres.

Once you have your business plan and finances in order, you can proceed to shop for lenders and rates. There are loans for beginner farmers and experienced farmers. Farmers who have been farming for less than ten years fall into the former category.

Borrowers who need funds to make down payments for a new farm will need to provide at least 5% of the total down payment cost.

It can be quite tough when you start searching for farmland loans since the requirements are a bit stringent. Fortunately, some lenders offer loans with flexible requirements. One of such lender is United Farm Mortgage. This lender does not consider the size of your project. They will provide you with a loan as long as you can make a profit from your farm.

United Farm Mortgage offers farm loan programs to people from diverse backgrounds. They offer both full time and part-time farm loans. This means that whether your only source of livelihood is farming or whether you do it as a hobby; you will still be eligible for a loan. If you are looking for a lender that allows you to access loans with a lot of ease and flexibility, this lender should be your first choice. For more details visit

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