The FSA provides farm loans to family-sized farms throughout the United States. There are a variety of loans available, such as for micro farms, young farmers, Native American tribes, new farmers, emergencies, or minority and women farmers. To find out more information and to apply for one of these loan programs, visit https://www.fsa.usda.gov/programs-and-services/farm-loan-programs/. If you don’t qualify for a government loan, you can get a private loan. Though big-city banks can assist you with plenty of transactions, it’s best to speak with a rural property lender when buying farmland. They will be familiar with the specific intricacies regarding loans for farmland. Once your money or funding is secure, you can put in an offer on the property you wish to buy. It’s best to start with a low—but fair—offer, such as 10% below the highest amount you’d be willing to pay, to leave room for negotiation. Your realtor can help advise you further and make the offer to the buyers. The buyer may accept your offer or ask for more money. Your realtor can work with both of you until an agreement is made. Then, a contract will be drawn up and a lawyer and/or realtor can help explain the terms of the contract to you, if necessary. Now is the time to make amendments or ask for upgrades! Once you sign the contract, you’ll need to put down earnest money until the deal is closed. To protect your investment, you may want to purchase both title and flood insurance. Title insurance guarantees your right to the property at the closing price and will also let you know if the area has been used for hazardous waste dumping. If the property is in a flood zone, you’ll be required to purchase flood insurance before closing on the property to protect yourself from losses due to flooding. Once both parties are happy with the contract, you can close on the property. Usually, you’ll need to meet the realtor and seller at the title company to close. The deed will be transferred to your name, and any keys to the gates or buildings will be handed over. You’ll be expected to provide the remainder of the money for the property at this time, usually by means of a certified check.
Find out if you’re eligible for government farm loan program. Meet with a rural property lender if you need financing. Make a fair offer on the property you wish you purchase. Negotiate the price and terms of the contract. Invest in title and flood insurance, if applicable. Finalize the deal to take ownership of the property.