The farm service agency (FSA) has launched a pilot program in six states to determine if land contracts are a viable alternative to facilitate land transfers to beginning farmers and ranchers.
Through the program, FSA will provide sellers a 10-year guarantee if their farm property is sold to a qualified buyer. Additionally, FSA guarantees a monetary amount up to two years of payments, real estate taxes and hazard insurance. Meanwhile, buyers receive a competitive interest rate and access to borrowed capital that they might not be able to obtain otherwise.
The pilot program is available in Indiana, Iowa, North Dakota, Oregon, Pennsylvania and Wisconsin.
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