SUMMARY

A land-buying enthusiast shares her 2023 experience comparing private Farm Credit loans—ideal for novices—with government USDA options, urging everyday people to acquire farmland amid a $24 trillion market shift.

STATEMENTS

• Farm Credit operates as a private institution separate from the federal government, allowing borrowers without any prior farming experience to qualify for land loans without submitting a business plan.
• To secure a Farm Credit loan, applicants typically need 20 to 30 percent down payment, a minimum credit score of 620, and provision of tax returns and bank statements to verify reliability.
• The Farm Credit approval process is notably efficient, often providing pre-approval on the same day of application and full approval within four weeks, making it appealing for those seeking speed.
• The USDA, as a federal government program, offers multiple loan variations tailored to diverse needs, including support for low-credit or low-income individuals, minorities, and women through five main land purchase programs.
• USDA loans generally feature lower fixed interest rates, such as 1.5 percent or 4 percent, compared to Farm Credit's higher rates of around 6 to 7 percent in 2023, influenced by market conditions.
• Most USDA land loan programs require at least three years of prior farming experience, or participation in an approved apprenticeship or mentorship to demonstrate capability for successful land use.
• USDA applications demand detailed submissions like a farming business plan, income projections, and profit strategies, adding pressure to prove viable agricultural intentions.
• The USDA's governmental structure introduces more bureaucracy and rules, resulting in a slower loan processing timeline compared to the streamlined private approach of Farm Credit.
• Approximately $24 trillion in U.S. farmland value is expected to transfer ownership over the next decade due to retiring farmers, creating an opportune moment for new buyers.
• Encouraging everyday individuals to purchase even small plots of land promotes stewardship, chemical reduction, and food autonomy, countering acquisitions by solar farms, developers, and Wall Street investors.

IDEAS

• Loans for raw rural land exist and don't require existing structures or full cash payment, opening doors for beginners who assumed otherwise.
• Farm Credit's independence from government enables flexible lending to total novices, bypassing the need for any agricultural background or plans.
• A massive $24 trillion farmland turnover looms as older farmers retire, presenting a rare window for non-traditional buyers to enter the market.
• Corporate entities like solar companies and Wall Street are aggressively acquiring farmland, potentially threatening local food production and environmental health.
• USDA microloans make even single-acre purchases feasible in rural or urban areas, democratizing access for small-scale dreams.
• Government-backed USDA programs prioritize equity with tailored support for underserved groups, including low-income, minority, and female applicants.
• Requiring three years of farming experience for USDA loans can be bridged via apprenticeships, turning inexperience into a structured pathway.
• Private lenders like Farm Credit treat land loans similarly to mortgages, focusing on financial reliability rather than intended land use.
• Everyday stewardship of small land plots could restore chemical-laden soils and bolster national food security against future shortages.
• Unconventional land-buying strategies, from grants to crowdfunding, expand beyond traditional loans, with 20 methods explored in ongoing series.
• Quick lender responsiveness, like same-day pre-approvals and community events, builds trust and eases the intimidating process for first-timers.
• Food autonomy emerges as an overlooked crisis: vanishing U.S. farms could leave the nation vulnerable without individual action.

INSIGHTS

• Land ownership barriers are lower than perceived, empowering non-experts to steward resources and resist corporate dominance in agriculture.
• Private lending prioritizes financial readiness over expertise, accelerating entry for novices while trading off affordability for speed.
• Government programs foster inclusivity for marginalized buyers but impose experiential hurdles, balancing equity with accountability.
• The impending farmland exodus underscores urgency: individual acquisitions can preserve local ecosystems and food independence.
• Bureaucratic delays in public loans highlight a trade-off—comprehensive support versus efficient access—suited to different buyer profiles.
• Educational resources on alternative financing methods can transform land buying from elite pursuit to accessible opportunity for all.

QUOTES

• "I genuinely believe we will have a better future if everyday people start buying this farmland."
• "What are we going to do when there are no longer farms in the United States of America?"
• "They don't really care what you do, which I liked cuz I didn't know what the heck I was doing here and I still don't know what the heck I'm doing here."
• "There will never be a better time to do this!"
• "Don't be afraid to buy land. I'm here to tell you, I've been doing this almost alone."

HABITS

• Conducting extensive personal research and documenting experiences weekly through writing on Substack to inform and guide others.
• Prioritizing speed in decision-making and processes, such as closing land deals swiftly to capitalize on opportunities.
• Engaging actively with lenders beyond transactions, attending community events like dinners to build ongoing relationships.
• Sharing transparent, unpaid reviews of services based on real encounters to promote honest discourse.
• Exploring and experimenting with new ventures like land stewardship despite initial lack of knowledge, learning on the go.

FACTS

• An estimated $24 trillion in U.S. farmland value is set to change hands over the next decade as American farmers retire.
• The Farm Credit System was created by the federal government a century ago but has since become an independent private entity.
• Farm Credit land loans require a minimum credit score of 620 and 20 to 30 percent down payment for approval.
• USDA land loan programs generally demand at least three years of prior farming experience or equivalent structured training.
• In 2023, USDA fixed interest rates for some land loans ranged from 1.5 percent to 4 percent, lower than Farm Credit's 6 to 7 percent.

REFERENCES

• Substack series "Unconventional Ways to Buy Farmland" at houseofgreen.substack.com, covering 20 methods including grants and crowdfunding.
• Detailed breakdown of five USDA land-buying programs in a linked Substack article.
• Farm Credit System website for locating regional offices like Farm Credit East.

HOW TO APPLY

• Assess your qualifications: Determine if you lack farming experience or need low-interest options—opt for Farm Credit if speed matters, or USDA if you're from an underserved group with some background.
• Prepare financial documents: Gather tax returns, bank statements, and verify your credit score exceeds 620; save for 20-30 percent down payment if pursuing Farm Credit to demonstrate reliability.
• Research specific programs: For USDA, explore the five main loans or microloans via their site; identify if you need an apprenticeship to meet the three-year experience requirement.
• Apply promptly for pre-approval: Submit to Farm Credit online for same-day response, or start USDA paperwork early to account for bureaucratic timelines, including any required business or income plans.
• Follow up and engage: After approval, maintain communication with the lender, attend any offered events, and plan land use flexibly—focus on stewardship regardless of loan type to ensure long-term success.

ONE-SENTENCE TAKEAWAY

Novices should weigh Farm Credit's speed against USDA's equity to seize the farmland boom for personal and communal benefit.

RECOMMENDATIONS

• Prioritize Farm Credit if you're a beginner without experience, valuing quick approvals over lower rates.
• Leverage USDA programs if low-income or from underserved communities, using microloans for small plots.
• Build credit above 620 and save down payments early to unlock private land financing options.
• Counter corporate land grabs by acquiring even modest acres for chemical-free stewardship and food security.
• Dive into educational series on unconventional buying to discover grants and crowdfunding beyond traditional loans.

MEMO

In the rolling hills of rural America, a quiet revolution brews as $24 trillion in farmland teeters on the edge of transformation. With aging farmers retiring en masse over the next decade, vast swaths of earth—once tilled by generations—are up for grabs. But who will claim them? Solar arrays, Wall Street speculators, and sprawling developers circle like hawks, eyeing profits over soil. Enter the everyday dreamer: a writer and novice steward who, in 2023, navigated this landscape to secure her own plot. Through her lens, the path to ownership unfolds not as an elite endeavor, but a democratized pursuit, pitting two lending giants against each other.

Farm Credit, born a century ago under federal auspices but now fiercely independent, stands as a beacon for the uninitiated. No farming pedigree required—no sprawling business plans or projections of crop yields. Instead, it's the stuff of standard mortgages: a credit score nudging 620, tax returns in hand, and a hefty 20 to 30 percent down. The speaker, fresh to the furrows herself, found solace in its velocity. Pre-approval arrived the night of her application; full clearance, just four weeks later. "They don't really care what you do," she notes wryly, a freedom that suited her uncertainties. Interest rates hovered higher—6 or 7 percent in a fidgety economy—but the trade-off? Swift entry into a world she barely knew.

Contrast this with the USDA, the government's sprawling safety net woven for the land-hungry. Five programs dangle like lifelines, especially for those sidelined by credit woes or scant savings: fixed rates as low as 1.5 percent, microloans for a single urban acre, and lifts for women, minorities, and low-income souls. Yet strings attach—three years of farming grit, or a sanctioned apprenticeship to prove one's mettle. Business plans must map profits from the dirt, income forecasts etched in ink. Bureaucracy slows the stride; tees crossed, eyes dotted, months may pass. For the speaker, it was a nonstarter. But for others, these safeguards could rewrite inequities in America's agrarian tale.

Why push this now? The speaker envisions a reckoning: chemicals leaching from overworked fields, corporate monoliths devouring commons, a nation adrift without its farms. "What are we going to do when there are no longer farms in the United States?" she asks, invoking food autonomy as an urgent creed. Her Substack series—20 weeks of unconventional hacks, from state grants to crowdfunding—aims to arm the fence-sitters. She's no expert, admits as much, yet thrives: alive, adapting, unalone in her solitude. Risk lingers, as with any real estate gambit, but so does the thrill.

Ultimately, her message rings clear: Don't cower. Loans for raw land abound, structures be damned. Whether Farm Credit's haste or USDA's depth, the soil awaits stewards willing to till it. As global echoes ripple—transferable tactics for buyers worldwide—the call grows: Reclaim the earth, one acre at a time, before the suits do.