Pennsylvania Next Generation Farmer Loan Program

The Next Generation Farmer Loan Program uses federal tax-exempt financing to reduce a farmer’s interest rate for capital purchases, such as the purchase of farm land or agricultural machinery and equipment.

• Beginning and first-time farmers.

• Borrower must be a permanent resident of Pennsylvania when the loan is issued.

• Borrower must be at least 18 years of age when the loan application is submitted.

• Borrower must work with a lending institution to obtain credit support for the financing.

• Borrower must meet the lender's credit standards.

• Borrower must document to the lender's satisfaction access to adequate cash flow, working capital, farm equipment, and livestock, if appropriate.

• Borrower must be the sole owner and principal user of the project.

• Borrower must not have had any prior direct or indirect ownership interest in a substantial amount of land, defined as a parcel exceeding 30% of the median farm size in the county where the land is located.

• An individual with prior ownership of land may still be eligible if they did not participate in the operation of a farm.

• Ownership or material participation by the borrower's spouse or minor child is treated as ownership or material participation by the borrower.

The lender determines the interest rate and the terms of repayment.

https://www.esa.dced.state.pa.us/Login.aspx

• Program Guidelines (PDF): https://dced.pa.gov/download/next-generation-farmer-guidelines/?wpdmdl=84578