3 Ways to Start Hobby Farming

Farm land loans can be a great way to finance the purchase of agricultural land. According to statistics, around 25% of US farm products by value are exported each year, with one farm feeding up to 165 people yearly.

However, there are some things you need to know to make the process as smooth as possible. Here are ways of obtaining farm land loans:

1. Bank or Credit Union.

Many banks and credit unions have specific programs for agricultural loans (farm land loans). This is a great place to start, as the institution may be familiar with the ins and outs of lending money for farmland purchases.

Be prepared to provide detailed information about your farms, such as production history and plans. The credit union or bank will also want to see a solid business plan that demonstrates you can afford the loan payments.

If you don't have an established relationship with a financial institution, start by contacting a local agricultural lender. They may be able to refer you to a bank or credit union that is familiar with agricultural lending. Be sure to ask about the interest rate, fees, and other loan terms. It's also important to understand the penalties for late payments or to default on a loan.

2. Farm Credit System.

The Farm Credit System is a nationwide network of agricultural lenders that finance land, equipment, and other agricultural needs. They have over 100 years of experience providing loans to farmers and ranchers.

To be eligible for a Farm Credit loan, you must be engaged in farming or ranching activities. The system offers a variety of loan products, including term loans, production loans, and lines of credit.

3. USDA Rural Development.

The USDA Rural Development program offers loans and grants for rural businesses, including agricultural operations. The program is designed to help farmers and ranchers who may not access traditional financing sources.

To be eligible for a USDA loan, the farm or ranch must be located in an area with less than 50,000 people. The USDA also has a program that guarantees loans from commercial lenders.


There are several options for financing an agricultural land purchase. Contact your local bank or credit union, the Farm Credit System, or USDA Rural Development to learn more about their lending products.