Calls, letters, and emails find their way to the Center for Rural Affairs each week from beginning farmers and ranchers asking for information, advice, money, land, and validation. We answer each one with encouragement and information. Below we share some often-asked questions and our responses. (See our January 2008 newsletter for Part I of beginning farmer/rancher resources.)
Q. I want to farm. What financial help is available to beginners?
A. There are a number of programs specifically for beginners; however, they are not all available in every state (
www.stateagfinance.org/types.html). Our Financing Strategies document gives an overview (
www.cfra.org/resources/beginning_farmer).
All states have low-interest beginning farmer loans through USDA Farm Service Agency: farm operating, farm ownership, and down payment loans. USDA also offers beginners special payments and access to the NRCS conservation programs.
Many states have ‘aggie bond’ programs for land or housing purchases that give tax breaks to the seller. Some parts of the national Farm Credit System offer loans for beginners. Several states have direct loans (not just for beginners), and some have loan guarantee programs.
Iowa and Nebraska have tax credits for landowners who rent to beginners. Connecticut makes grants for farm expansion. Iowa supplements down payments for low-income borrowers. California FarmLink runs ‘matched savings account’ and direct loan programs. If your state does not have such programs, you could help get them started.
Q. I want to farm. I’m looking for a beginning farmer class so I make fewer mistakes.
A. There are two types of beginning farmer courses to look for: ‘how to farm’ courses, which should have some hands-on or go-see elements; and ‘business planning’ courses, which cover the financial, planning, and goal-setting elements of a farm business. If you're new to it all, you may need both to best reduce your risk of costly mistakes.
In addition to its library of how-to publications, ATTRA has links to information on college degrees, training programs, and on-farm internships (
http://attra.ncat.org/education.html), which range from four-year programs, to online classes, to weekend workshops, to season-long job shadowing.
Business plan information is available from a number of sources, but look for one that brings a farm perspective, such as ‘Farming Alternatives’, available from Cornell Extension (1988, 88 pages, $8).
Moreover, it’s unlikely that you (or anyone else!) is passionate or skilled at all three essential elements of running the business – production, marketing, finance – so your planning can identify how you'll overcome your weak areas.
Many new farmers benefit from the advice of an experienced farmer. Seek out a mentor who knows the things you want to learn and who cares about your success. Meet such folks at sustainable agriculture conferences and farm tours (ATTRA has a list of organizations by state).
Contact: Wyatt Fraas for more information,
wyattf@cfra.org or 402.254.6893.
