Eligibility to Borrow

Eligibility to Borrow

Farm Credit is a member-owned cooperative and is not operated or funded by the government. However, we are regulated by the Farm Credit Administration and subject to some restrictions on our lending. Below are some general guidelines, but feel free to call our loan officers to discuss your particular situation.

For Country Homeowners

Farm Credit can lend money for the purchase, refinance, construction and improvement of single family dwellings located in the country. Loans can also be made for the purchase and refinance of unimproved residential lots.

For Part-Time Farmers

For the individual who owns agricultural land or produces agricultural products, but the agricultural operation represents less than 50% of the total business, Farm Credit can lend for all agricultural and family needs. Non-agricultural needs are limited relative to the agricultural income.

For Full-Time Farmers

For the individual whose primary business (over 50% of assets and income) is the production of agricultural products, Farm Credit can lend for all agricultural and family needs, as well as non-agricultural needs, including automobiles and trucks, education expenses, home improvements, vacation expenses, and much more.

For Businesses

Farm Credit can lend money to businesses which process and/or market agricultural products, provided more than 50% of the business is owned by farmers and those owners provide some of the "throughput". Farm Credit can also lend money to businesses that provide services to farmers (such as crop spraying, seed cleaning, cotton ginning, etc.). The extent to which financing can be provided is based on the amount of the business's total income that is from farm-related services.

Young, Beginning and Small Farmers

To be considered a young farmer, an individual must be 35 years or less. If the individual has been farming for 10 years or less, they are considered a beginning farmer as well. In addition to these categories, small farmers are those who operate farms producing $250,000 of gross revenue or less. For more information on our young, beginning, and small farmer programs, click here.

What is Agricultural Income?

Agricultural Income Includes:
- sale of agricultural products
- sale of livestock
- sale of aquatic products
- boarding of horses or other similar services
- cash farm rent and hunting or fishing rights
- sale of timber and timber growth
- poultry and swine contracts