Kansas Development Finance Authority Beginning Farmer Bond Program

KDFA continues to offer this tax-exempt bond program authorized by the federal tax code. The program assists farmers who have not previously had or who do not currently have substantial ownership interest in farmland in financing their agricultural businesses to start or keep them in farming. By making loans available at below-market interest rates through private lenders, KDFA assists farmers to become valuable assets for the state of Kansas. The program can be used by beginning farmers for purchasing agricultural land, farm buildings, farm equipment, and breeding livestock, and beginning farmers may borrower up to $649,400 under the program limits, subject to lender approval.

Basic Qualifications:

• May not have previously owned any substantial amount of farmland.

• Program may be used to purchase agricultural land, agricultural improvements, and depreciable agricultural property (new and used).

The loan maximums under existing federal law are:

• $649 400 base cap, indexed annually for inflation for agricultural land, agricultural improvements and depreciable agricultural property

• Of which no more than $62,500 may be for used property.

There is no minimum loan amount for the Program.

Beginning Farmer may not cash rent or custom hire a majority of the fieldwork or livestock management to be completed.

The Beginning Farmer must be an individual. Loans to corporations, partnerships, LLC's, etc. are not eligible under the Federal Tax Code.

Application

These documents are links to Microsoft Word documents that will need to be downloaded to view:

• Beginning Farmer Brochure

• Beginning Farmer Program Summary

• KS Median Farm Size Table