LOOK: Getting Rural Farm Loans This 2017

LOOK- Getting Rural Farm Loans This 2017

Rural farm loans bring you closer to your dream of owning a patch of agricultural land in the country. They make up most of the U.S.’s more than nine million acres of farmlands. These rural farms produce crops that nourish families in the U.S. and other parts of the world. With financing and the advent of modern farming, it’s possible to sow the seeds and reap what you sow in your own farm. Learn the ropes here.

Learn where to find lenders for your loan, too.»

Defining ‘Rural’ the USDA Way

Per the U.S. Department of Agriculture (USDA) standards, an area is “rural” if it meets the following criteria:

  • Located in an open countryside.
  • A rural town with a population of 2,500 or fewer.
  • Has some attributes of an urban area but its residents must number below 49,999.

Applying this definition, we go to the different types of farms. Rural farms are one, as well as urban farms, hobby farms, and micro farms. Looking at these types would tell you that growing food and raising livestock is pretty much accessible to everyone, not just for the landed gentry of the past.

It is thanks to farming tools and technology becoming readily available; anyone can produce his/her food at his/her humble backyard, patio or even rooftop.

In terms of sales, these so-called hobby farms and micro farms are not businesses because they don’t sell their produce and if they do, that would amount to less than $1,000 a year. Those making $1,000 to $250,000 sales a year are called small farms per USDA standards and any farm earning above that would be considered large-scale.

Let’s help you find a rural farm lender.»

Rural Farm Loans and Your Farming Venture

The success of your farming venture would primarily rely on financing and planning. With your farm starting out as a small business, you might have to do everything from scratch.

Learning. Do you know the basics of farming? How well do you know the land? Do you have to lease or purchase the farm? Study farming, it could mean taking a crash course or being a hand in a farm to learn first-hand. Access resources such those found on the USDA site and other reputable online websites.

Basic accounting. While you don’t necessarily have to enroll in an accounting course, it would help if you know how to balance your books. Where your money goes, whether you’re earning, and all that can be discussed with fellow farmer entrepreneurs and accountants.

Marketing and advertising. What does your business sell? Will it sell in your area? Who is your target market? How do you intend to sell your products? Conduct a market research first to know your prospects and potential of the business to thrive.

Financing. Rural farm loans are specifically designed for families and individuals to obtain capital to buy equipment, land, inventory, and other assets necessary to start their own farming business. A financing for new farmers, your rural farm loan would depend on the size, type, and scale of your farming production.

Are you ready to be a farmer? Access rural farm loans here.»