WASHINGTON, January 4, 2012 -The Farm Service Agency (FSA) implemented a new program for beginning farmers that provides an alternative for intergenerational transfers of farm real estate.
Under the Land Contract Guarantee Program, which became effective Jan 3, 2012, a seller can ask USDA to guarantee 90% of their contract payments or, as another option, ask USDA to make up to three years’ payments, plus cover the real estate taxes and insurance on the land.
Eligibility for the Land Contract Guarantee Program is limited to beginning farmers, those in business for fewer than 10 years, and socially disadvantaged farmers.
FSA also changed the eligibility for Direct Farm Ownership and Farm Operating Loans. The rule published in the Federal Register Vol. 76, No. 232 amends the experience requirements for direct loan eligibility to consider all prior farming experience of the applicant. FSA requires that the broadened farm experience requirement be supplemented by on-the-job training or education that occurred within the last five years prior to the date of the application, if all prior farming occurred more than five years prior to application.
Emergency loan eligibility is expanded to equine farmers under the rule published Dec. 2. Equine farmers whose primary enterprise is to breed, raise and sell horses may now have their losses treated the same as those for other types of livestock operations. To see the Farm Service Agency farm loan regulation amendments, click HERE.
Original story printed in January 4, 2012 Agri-Pulse Newsletter.
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