Missouri Agricultural and Small Business Development Authority Beginning Farmer Loan Program (BFLP)

The Agricultural and Small Business Development Authority administers a program that enables lenders to receive federally tax-exempt interest on loans made to beginning farmers. The tax savings are passed on to beginning farmers in the form of lower interest rates. A qualified borrower can borrow up to $682,700 to buy:

• agricultural land

• farm buildings

• farm equipment

• and breeding livestock

The maximum loan is $682,700. Of this amount, depreciable agricultural property may not exceed $250,000, with a limit of $62,500 for used depreciable property.

• Borrowers must be legal Missouri residents at least 18 years old

• Borrower must be able to provide proof of citizenship, identity and legal Missouri residence. If the borrower employs laborers, he/she must also provide proof of enrollment and participation in the federal work authorization program.

• The project must be located within Missouri

• The borrower must have adequate working capital and experience in the type of farming operation for which the loan is sought

• The beginning farmer is one who has not owned, either directly or indirectly, more than 30 percent of the median size of a farm in the county

• After the loan is closed, the borrower’s chief occupation must be farming or ranching, gross farm income must exceed any off-farm income (spouse’s off-farm income does not count in determining eligibility)

• Individuals in partnerships are eligible for loans if all partners meet the eligibility requirements

A qualified borrower can borrow up to $682,700 to purchase agricultural land, farm buildings, farm equipment, and breeding livestock. The maximum loan is $682,700. Of this amount, depreciable agricultural property may not exceed $250,000, with a limit of $62,500 for used depreciable property.

The terms of the loan are negotiated by the lender and borrower.

• Beginning Farmer Loan Program Guidelines

• Beginning Farmer Loan Program Application

Borrowers qualifying for the Beginning Farmer Loan Program may also qualify for the Missouri FIRST Program administered by the state treasurer’s office. The Missouri FIRST Program makes funds available at reduced interest rates to lenders who in turn pass the savings along to agricultural borrowers. To find out more about the Missouri FIRST Program, call the state treasurer’s office at (573) 751-2372 or visit their website at www.treasurer.mo.gov. Borrowers may also qualify for the United States Department of Agriculture’s (USDA) Down Payment Loan Program and Joint Financing Plan for further reduction of interest.