Eligible Agricultural Projects
Real estate used in an agricultural operation, including improvements to real estate such as terracing, wells, water impoundment and permanently-affixed buildings used for farming purposes. (The term "farm" includes stock, dairy, poultry, fruit, fur-bearing animal and truck farms, plantations, ranches, ranges, and orchards used primarily for the raising of agricultural or horticultural commodities.)
- The beginning farmer acquiring the farmland must be the principal user of the land, and materially and substantially participate in the operation of the farm.
- The land to be acquired is used only for an agricultural purpose.
- The total amount of loans to finance the land, together with any portion of the loans allocated to financing depreciable property, may not exceed $524,200*. (See specific limits on financing depreciable property.). If real estate acquired with proceeds of a loan includes the financing of used equipment or other property, the value of such used equipment and property financed as part of the loan may not exceed $62,500.
*adjusted annually for inflation/deflation
Depreciable property used in an agricultural trade or business, including, but not limited to, equipment and breeding livestock.
- The total amount of loans for existing (used) depreciable property/livestock may not exceed $62,500.
- The total amount of loans for both new and existing depreciable property (including breeding stock) may not exceed $250,000.
- The total amount of loans for depreciable property (subject to the foregoing limits), when aggregated with any NIFA loan for real estate, may not exceed $524,200.
Proceeds of the agricultural loans may not be used to provide working capital or to refinance existing Ag indebtedness incurred more than 60 days prior to NIFA's execution of an Intent Resolution. These loans may be used, with certain restrictions, for property purchased at auction. Contact NIFA for details.
Agricultural loan proceeds may be used to purchase eligible projects from a related person under certain circumstances. NIFA will interpret questions on individual situations.