Series II Beginning Farmer Loan Program

The Beginning Farmer Loan Program, administered by the North Carolina Agricultural Finance Authority (NCAFA), provides low cost, long term financing to assist North Carolinians in starting farming careers. Loans are provided by NCAFA in conjunction with the Farm Service Agency's Down Payment Loan Program and may be used for purchasing farmland (including existing improvements). Beginning Farmer Loans carry competitive interest rates for farmers who might otherwise not be eligible for loans.

Applicants must have operated a farm for at least 3 years but not more than 10 years; never have held a direct or indirect ownership interest in substantial farmland; have access to adequate working capital; be educated or experienced in the type of farming operation sought; meet the basic eligibility requirements for a Series I loan; and make a cash down payment of at least 5% of the purchase price.

Obtain an application from the NCAFA (its loan request is for no more than 50% of the applicant's need) and simultaneously submit an application to the local FSA office for its Down Payment Loan Program (no more than 45% of need); NCAFA accepts the FSA-completed application and evaluates a loan for 50% of the applicant's need. A $75 application fee is required at submission and a closing fee equal to 1% of NCAFA's loan may apply. Terms: variable rate of Prime plus 0.75% (may change quarterly), amortized over 30 years with a balloon payment no earlier than 20 years after origination. Loan limit: up to $333,500.00 for purchasing land.