Delaware Young Farmer Loan Program

Established in 2011, the Young Farmer Loan Program offers a 30-year, no-interest loan to help young farmers purchase farmland, one of the chief obstacles to starting out in business. The loan is for up to 70 percent of the appraised value of the farm's development rights, not to exceed $500,000. Farms in the program are placed into a permanent preservation easement.

Applicant must be a Delaware citizen between the ages of 18 to 40, with a net worth not exceeding $300,000 and at least 3 years of farming experience (joint applicants' combined net worth cannot exceed $300,000). The farm must be located in Delaware and contain at least 15 acres of cropland, must not be enrolled in a conservation easement at the time of purchase, and the applicant must not already own more than twice the amount of tillable acres they wish to purchase.

The loan carries no interest and a 30-year term, for up to 70% of the appraised value of the farm's development rights, not to exceed $500,000; the Young Farmer loan typically covers about 50% of the purchase price, so most applicants also need a commercial loan, which is treated as the primary loan and repaid first (the Young Farmer Program loan is repaid over the remaining balance of the 30-year term). Farms financed through the program are placed into a permanent agricultural preservation easement. To date, 36 young farmers have received $8 million in loans to purchase over 2,800 acres.

The Aglands Foundation Board only accepts loan applications when funding is available. Interested individuals may submit a pre-qualification application at any time, submitting a fully executed sales contract, a loan eligibility letter from a commercial lender, and a farm (business) plan.