Financing Your Farm in 2022

February 1, 2022

As 2022 ramps up and the desire to invest in farmland grows, current farmers are looking for the best ways and options to grow their farm operations and invest in more land. Current farmers and those who want to get into the industry have several opportunities to grow their portfolios and presence. 

Get Investors

Intelligent investors understand that farmland is a limited asset and want to invest in an innovative plan to generate revenue. If you have an idea or opportunity for growth or expansion, you do could have the option to generate farm funding from investors. By outlining your goals and plan for your farm over the next five and ten years, interested investors may be willing to assist you with the cash you need to purchase the additional land or improvements to your operation.  If you have plans to expand your farm operation or an opportunity to purchase more ground, we'd be happy to review your project and see if it could be a good opportunity for our pool of investors. Share your plans with us here.

Lending Is Always Available

If you have enough assets on your current farmland, you can consider taking out a loan to make a purchase for additional farmland and equipment that may be necessary. When you decide to go through a farm lender, you can explain and detail your goals for the property you are looking to purchase. A farming lending partner will consider all the different aspects of your business plan when they are deciding whether to lend a loaning hand. Ag lenders typically offer fixed, adjustable rate, and variable rate options. If a loan is something you're interested in, contact us here and we will connect you with our preferred lending partner.

Beginning Farmer Grants

As a young farmer, someone who may have inherited a small farm or is looking to invest in farming, the USDA offers grants for those looking to invest in their property and provide grants that can be used as a down payment or investment into farmland. Keep in mind that these funds are often dispensed to be used as outlined. Depending on what the grant was allocated for when you put this money down on farmland, you will need to use that land exactly as outlined. 

Federal Farm Loans

If you are making a change into farming and do not have the same credit profile that private lenders are looking for, you can finance your small farm in 2022 with a federal farm loan from the USDA. Unlike the grant money, these loans need to be repaid and used for the intended purpose.

  • Operation Loans: These are meant for purchases for your farm, such as seed, livestock, and even equipment. 
  • Farm Ownership Loans: If you are looking to expand your current farm, this loan is ideal for the cost of the land, barn improvement on the property, and the conservation of the soil and water. 

Prepare Yourself For Your Investment

If you decide that it is time to finance your farm, take advantage of the different options available for farm financing. Choosing to go the route of personal investors can offer a lot of flexibility. If that's not an option for you, a loan, or getting a federal grant is a choice you can make based on how much land you are trying to purchase and how many restrictions you are willing to have. No matter what your needs are in 2022, there are several options that you can consider making your farm goals attainable.