The Beginning Farmer/Rancher Bond Program Helps Future Farmers
Farming and ranching is hard work. Finding the funds to begin and operate a working farm or ranch can be even harder work and can pose as a real obstacle to those wishing to enter the business of agricultural production.
But future farmers can now get some help in starting a new farm or ranch thanks to a partnership between the Washington State Housing Finance Commission and Northwest Farm Credit Services.
The Beginning Farmer/Rancher Bond Program, a tax-exempt bond program designed to assist new farmers and ranchers in Washington state, offers loans to qualified beginning farmers and ranchers to help them obtain agricultural property at lower interest rates. The loan can also be combined with other loans and grants.
The bond loan is available to beginning farmers and ranchers who are at least 18-years old, residents of the state of Washington and have sufficient training, education and experience in the type of farming application for which the loan is requested.
Individuals or families who have worked on farmlands but have not had any ownership or interest in the farm or operation for which they worked, and farmers and ranchers who have owned or operated a farm or ranch that was less than 30 percent of the county’s median farm size are also eligible.
Corporations, partnerships and limited liability companies are not eligible.
To qualify for the bond loan, the farm must be managed and labor must be performed by the farmer/rancher and/or his/her children. All agricultural land, agricultural improvements and depreciable farm property acquired with the bond loan must be used for farming purposes during the bond loan period.
Off-farm income is also permitted.
The Beginning Farmer/Rancher Bond Program loan can be used to finance farm land, for construction of or improvement to farm buildings and structures, to purchase machines and equipment and to purchase animals for breeding, work and meat and dairy production and depreciable farm property.
