Series III Ag Start Beginning Farmer Real Estate Loans

The North Carolina Agricultural Finance Authority (NCAFA) 'Ag Start' Beginning Farmer Real Estate loans can be made to buy, improve, or enlarge farms. Purposes may include construction, improvement, or repair of farm homes and service buildings; improvement of on-farm water supplies; installation of pollution controls; soil and water conservation measures to develop, conserve, or make proper use of land and water resources; irrigation systems; drainage improvements; refinancing debts; and providing for production of fish under controlled conditions.

Individuals, farming corporations, partnerships, or joint operations that are unable to obtain sufficient credit at reasonable rates and terms from other lenders without a Farm Service Agency (FSA) guarantee; are U.S. citizens or legal resident aliens maintaining a farming operation in North Carolina; have adequate training or farming experience and have not had substantial farm ownership prior to application; rely on farm income and are recognized in the community as a farmer; have serviced existing debts reliably; have adequate management ability; and will be the owner-operator of a family-size farm after the loan is made.

Apply through the NCAFA. Terms: prime plus 1.00% (variable, may change quarterly), for repayment periods up to 30 years, with a balloon payment for outstanding principal due at the mid-year of the original loan term (e.g., end of the 15th year on a 30-year loan). At least one-half (50%) of the loan is made by the Farm Credit System (FCS) jointly with NCAFA (maximum term 20 years with a fixed rate determined at the time of the loan; NCAFA helps contact the local FCS office). Loan limit: NCAFA's portion is limited to $1,392,000.00; FCS participation increases the total loan limit beyond that amount.