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For Immediate Release: September 16, 2008
Contact: Michael Schelske 1-800-228-5254
Contact: Michael Schelske 1-800-228-5254
Beginning Farmer Bond Maximum Amount Increased
(Pierre, SD)---The 1995 Legislative Session brought exciting opportunities for beginning farmers and investors by passage of the Beginning Farmer Bond Program.
Now, in 2008, beginning farmers can take out a larger loan as the bond program has been expanded in the new Farm Bill. The maximum loan available under the Beginning Farmer Loan Program has been raised from $250,000 to $450,000, and there is no longer a $125,000 value limitation on previously owned “substantial farmland.” The Value Added Finance Authority Board also increased the $125,000 limit on new depreciable agricultural property to $250,000. The changes are effective as of September 30, 2008.
The Beginning Farmer Bond Program works by providing tax-exempt bonds to participating banks and individual bond purchasers, thereby, reducing interest rates by up to 2 percent for beginning farmers. This opportunity can give qualifying beginning farmers, and those farmers who want to come back to farming, a helping hand by making their entry into the industry more affordable.
Since 1995, the program has closed 302 loans with an average interest rate of 6.77 percent for all applications received.
If you have any questions about the Beginning Farmer Bond Program, please contact Michael Schelske at 605-773-5436 or e-mail him at michael.schelske@state.sd.us.
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