The Farm Service Agency has launched a pilot program in Indiana, Iowa, North Dakota, Oregon, Pennsylvania and Wisconsin to determine if land contracts are a viable alternative to facilitate land transfers to beginning farmers and ranchers.
Through the program, FSA will provide sellers with a 10-year guarantee if their farm property is sold to a qualified buyer. Additionally, FSA guarantees a monetary amount for up to two years of payments, real-estate taxes and hazard insurance. Meanwhile, buyers receive a competitive interest rate and access to borrowed capital that they might not otherwise be able to obtain. For more information, go to www.fsa.usda.gov/dafl/what’s%20new.htm