Farm Transfer Transition Loans

The Farm Transfer Transition Loan program provides a variety of flexible financing options, enabling smoother transitions and financial planning for both buyers and sellers. The modalities are designed to support cash flow and build equity efficiently.

• Disbursements are made to the seller over time, up to five years, ensuring payments are aligned with cash flow management.
• Interest is charged only on the disbursed amount, making it a cost-effective solution for transitional financing.
• Buyers can opt for interest-only payments or principal-plus-interest payments, allowing greater flexibility in payment structures.
• FCC finances the down payment for a maximum of seven years, eliminating the immediate capital requirement for purchasers.
• The program includes an AgExpert Bundle, providing one year of AgExpert Accounting Premium and AgExpert Field Premium, valued at $499.
• The seller benefits from a Payment Schedule Guarantee by FCC, ensuring full payment of sale proceeds with minimal risk.
• Additional features include pre-approved lines of credit and deferred payment options, enabling more adaptable financial strategies.
• Extended disbursement periods and an interest-only payment option cater to diverse financial needs and timelines.

Eligibility for the Transition Loan involves certain criteria related to the applicant's situation and financial needs.

• The applicant must be involved in farm transfers, either transferring farm assets or acquiring them as a young farmer.
• The applicant should be in need of financing to manage cash flow or to build equity quickly.
• The buyer must qualify for FCC to finance the down payment for a maximum of seven years.

Who is eligible?

Eligible expenses

This financial initiative is tailored to support farm asset transfers and aid young farmers in establishing their operations. It focuses on flexible payment methods and risk mitigation for both buyers and sellers in the farming industry.

• Facilitating the transfer of farm assets to young or new farmers through structured payment plans.
• Providing financial solutions like interest-only or principal-plus-interest payments to improve cash flow management.
• Offering opportunities to build equity in farming operations through accessible financing options.
• Ensuring complete payment to sellers over an agreed period, backed by guarantees for financial security.
• Supporting tax advantage opportunities for sellers receiving payments over time.

Here are additional relevant details for this loan:

• Access to AgExpert software: AgExpert Accounting Premium and AgExpert Field Premium are offered for free for one year, valued at $499.
• Loan Insurance is available, ensuring protection of your most important asset.
• Contact methods are diverse, including phone, email, local office visits, and various social media platforms.
• There's additional educational content available through the FCC Knowledge Newsletter and Loan Essentials guidance.