- Below market interest rates for first time farm owners
Funding Uses & Purposes
- Agricultural land
- Agricultural improvements
- Depreciable agricultural property, such as farm machinery
Beginning or first-time farm owners who are purchasing farmland and meet the following criteria:
- No prior direct or indirect ownership interest in a substantial amount of farmland. A substantial amount of land is a parcel, which exceeds 30% of the median farm size in the county in which the land is located.
- Must be the sole owner and user of the project
- Must be a permanent resident of Pennsylvania and at least 18 years of age
- Sole proprietor net worth of < $544,000
- Partnership net worth < $1.089 million.
- Must meet bank’s credit standards
The borrower will work with their bank to receive credit approval terms for their loan. Simultaneously, EDC Finance will determine eligibility and receive tax exempt status approval through Penn IDA. The borrower will close with the bank when all approvals are in place.
- $543,000 maximum loan amount per person/couple/partnership for land and related assets
- $62,500 maximum loan amount for used equipment
- $250,000 maximum loan amount for the purchase of new improvements
- Borrowers can combine other loans with the Next Generation Farmer Loan to complete the project financing package