Beginning Farmer Bond Program

The South Dakota Beginning Farmer Bond Program (SDBFBP) is a tax-exempt bond program designed to assist Beginning Farmers in the state of South Dakota to acquire agricultural property at lower interest rates. It enables lenders, individuals, partnerships, corporations, and other entities (the "Bond Purchaser") to receive federally tax-exempt interest on a loan or contract sale made to Beginning Farmers. After arranging the loan or sales contract, the Bond Purchaser obtains from the South Dakota Economic Development Finance Authority a federally tax-exempt Private Activity Bond in the amount of the loan or unpaid balance. The program enables lenders and qualified beginning farmers to save on interest by using federally tax-exempt bonds on loan amounts up to $600,000. Use of funds: real estate, depreciable property, and breeding livestock. The bond purchaser, usually the lender, sets rates and terms.

Beginning Farmers in the state of South Dakota. Use of funds is limited to real estate, depreciable property, and breeding livestock, on loan amounts up to $600,000.

Complete the Beginning Farmer Bond Application (available from SDGOED); see the Beginning Farmer Bond Summary for details. Contact the South Dakota Governor's Office of Economic Development.