| Requirements |
Beginning Farmer & Seller Assisted**** Loan Programs |
Aggie Bond Beginning Farmer Program |
Agricultural Improvement Program |
| Residency: |
Minnesota only |
Minnesota only |
Minnesota only |
| Location of property: |
Minnesota only |
Minnesota only |
Minnesota only |
| Maximum net worth: |
$455,000 |
$455,000, also can never have owned more than 30% of the county median size farm |
$455,000 |
| Loan purposes: |
Real estate |
Purchase animals, machinery, real estate or to make an improvement. (No refinancing) |
Any physical improvement to farm operation. (Limited refinancing) |
| Financing allowed: |
First real estate mortgage filed by local lender. Additional $$ help by the seller.**** |
Secured as lending entity requires. |
First real estate mortgage. Mortgage does not need to cover the entire farm. |
| Equity required: |
10% minimum. Lender may require higher down payment. Seller may help.**** |
Negotiated with lending entity. |
Negotiated with Lender and RFA. |
| Interest rate: |
RFA - Call for current quote.
Lender-negotiate.
Seller-negotiate.**** |
Reduced interest rate for buyer and tax benefit for lender. |
RFA - Call for current quote.
Lender-negotiate. |
| Loan amounts: |
No limits - but RFA participation 45% of first mortgage to a max of $400,000. |
$524,200 max. but only $62,500 max. for used depreciable assets; $250,000 max for new depreciable farm property. (The RFA does not participate.) |
No limits - but RFA participation 45% of first mortgage to a max of $400,000. |
| Sales between related persons? |
Yes |
Yes, bank financing only. |
N/A |
| Off-farm income okay? |
Yes |
Yes |
Yes |
| Must show adequate management skills? |
Yes |
Yes |
Yes |
| Must be or become a full-time farmer? |
Yes |
Yes |
Yes |
| Must farm unit? |
Yes |
Yes |
Yes |
| Must contact local SWCD office? |
Yes |
Yes |
Yes
Permits required? |
| Must purchase insurance? |
Yes |
Recommended |
Recommended |
| Must attend farm management classes? |
Yes |
Yes |
N/A |
| RFA Fees: |
$50 application fee
(non-refundable) |
$50 application fee (non-refundable)
plus the following:
$20 / 40 / 60 / 80 / 100 / 120 allo. fee
1.5% loan origination fee |
$50 application fee
(non-refundable) |
