Many beginning farmers in Missouri struggle to get funds to run their businesses. They often need money to buy farm inputs and machinery. It is tricky for an inexperienced farmer to get farm credit Kansas from banks or other financial institutions. But, you can join a farm loan program. The following are five top farm loan providers in Kansas City.
1. Kansas Development Finance Authority
The Kansas Development Finance Authority (KDFA) runs a tax-free beginning farmer loan program. The federal tax code authorizes the program. It helps lack ownership interest in their farmland to finance their businesses. KDFA offers affordable farm loans through private lenders.
2. The Agricultural and Small Business Development Authority
The agricultural development authority administers a beginning farmer loan program which helps farmers get interest-free farm loans from lenders. It provides them with up to $552,500 to purchase agricultural land, farm buildings, and equipment. The Agricultural and Small Business Development Authority provides lenders with a tax-free private activity bond to finance farm loans. The authority assigns the farm loan and collateral to a lender as the bond’s security.
Farmers should be Missouri residents who are more than 17 years old. They should provide their identity, legal Missouri residence, and citizenship. Farmers with laborers are required to prove their enrolment in a federal work authorization program and their farm business should be within Missouri. The borrower and lender negotiate the terms of the farm loan. Moreover, the authority requires borrowers to pay a $300 non-refundable fee when they submit their applications.
3. United Farm Mortgage
United Farm Mortgage offers farm loans to rural communities and farmers in Kansas City. It has experienced mortgage experts who understand the legal requirements of applying for agricultural loans. The lender charges low-interest rates to beginning farmers. You can use the credit to expand, market or improve your farm business. It is appropriate for people who engage in organic farming, hydroponics, vertical and freight container farming. United Farm Mortgage offers part-time and full-time farm loans.
4. United States Department of Agriculture-Farm Service Agency (USDA-FSA)
The Farm Service Agency (FSA) helps small-scale farmers to start, expand, improve and market their farming operations. The agency supports beginning farmers, ethnic and racial minority farmers. It offers the following farm loans:
- Microloans: They help small farmers finance their operations. The loans have less paperwork compared to ordinary loans.
- Direct Operating Loans: Farmers can use the credit to buy farm equipment, pay for farm insurance and buy livestock feed.
- Guaranteed Loans: They help lenders extend farm credit to farmers who don’t qualify for commercial loans. The program provides extra servicing fees and loan businesses to financial institutions.
5. Ag Lending Group
Ag Lending Group is a non-bank lender that specializes in agricultural real estate and farm loans. It supports cotton, fruit, row crop and vegetable growers in all American states. The lender offers farm mortgages to all orchards and farms. It offers loans of up to $100,000,000. Its farm loans have low-interest rates.
Getting farm loans with low-interest rates is a challenge for many farmers in Kansas. It is tricky to apply for a loan from certain lending institutions. But, farmers can get farm credit Kansas from the Kansas Development Authority, the Agricultural and Small Business Development Authority, the USDA FSA, United Farm Mortgage and Ag Lending Group.
