An Uphill Battle has Started

One of my big projects has been to get a loan to start purchasing the farm from my parents.  For those of you who have ever tried or gotten a loan you know it is not an easy thing.  To purchase something like a house there are a lot of hoops to jump through and a lot of paperwork.  A farm is no different in that respect.  In order to buy a farm or some farmland you have to have a financial history that includes an agricultural business.

In order to get my financial history started I am going through a government farm loan program.  It’s called a Beginning and Young Farmer Loan and it’s through a division of the USDA called the Farm Service Agency.

Of course there are lots of rules, like there is a maximum age, a maximum amount of money one person can receive.  Just to name a few of the rules.  There’s also forms and forms and oh wait…. More forms to fill out!  But in the end, I have the opportunity to  start purchasing the farm.

To me, the biggest advantage of this program is being able to purchase the farm completely on my own.  If I would have tried to go through a bank I would need a co-signer.  Which means, if I default on the loan payments my co-signer would be liable to pay the loan back.  If my parents would have co-signed for the loan they would still be tied to the farm, which is not the point of me buying it.

Hopefully I will find out soon whether I get approved for the loan, but right now it’s a waiting game.  Wish me luck and I will let you know when I get official word!