The Texas Agriculture Commission is calling on aspiring farmers and ranchers across the state to explore new opportunities to buy land, with some big benefits, through the Department of Agriculture’s (USDA) Farm Service Agency program (FSA).
For those just starting in the farming industry, the USDA now offers a collection of different programs designed to make farm ownership more accessible. One of the standout programs is the Direct Farm Ownership Down Payment Loan, which allows beginning farmers to finance up to 45% of a farm’s purchase price with 5% down payment.
Depending on the farm’s appraised value, the maximum loan from the USDA can reach up to $300,000 in total, giving new farmers a chance to own land and profit from it without incurring heavy interest on third-party loans or long-term mortgages.
“Texas farmers and ranchers just starting out have an incredible opportunity to launch their futures. ‘With support from the USDA’s Farm Service Agency, beginner farmers and ranchers can transform Texas land into the American dream. We are dedicated to nurturing the next generation of agricultural leaders right here in Texas,” said Texas Agriculture Commissioner Sid Miller.
To qualify as a “beginning farmer,” applicants must have been in the farming industry for less than ten years, own no more than 30 percent of the “average-size farm in their county,” and must “actively participate” in managing the land or what the farm produces. In some cases, relevant education, military service, or mentorship may be considered substitutes for practical farming experience when applying for the new farmer loan, according to the USDA.
Beyond the Down Payment Loan, FSA also provides “Direct Operating Loans” and “Microloans,” which can help beginning farmers pay for normal operating costs and other basic living expenses. Applicants can also combine their FSA funds with private lenders through joint financing, potentially providing an even easier path to buying a new farm.
“You’re not just buying land: you’re investing in your future and America’s future,” Miller added. “With FSA’s support, you have the tools, the terms, and the trust to make it happen. But don’t wait too long, these loans are distributed on a first-come, first-served basis.”
For more information on the new programs and loan opportunities, aspiring farmers can contact their local FSA office or visit a USDA service center, where staff can provide assistance with information on eligibility for loans and the overall application process.