Richmond County USDA Farm Service Agency (FSA) Farm Loan Manager William Rhodes reminds Richmond County landowners that the Land Contract Guarantee Program is available to landowners wanting to transfer farm real estate to the next generation of farmers and producers.
The Land Contract Guarantee Program provides a new approach for Richmond County landowners willing to sell their land to beginning or socially disadvantaged farmers or producers. The program reduces the seller’s financial risk if the buyer defaults on the contract payments.
The buyer must provide a minimum down payment of 5 percent of the purchase price, plan to operate the farm, and demonstrate the ability to make the land contract payments. This national program options are one that guarantees up to three annual installment payments on the contract and one that guarantees 90 percent of the unpaid principal of the contract. Guarantees can be used for financing the purchase of a farm with a purchase price up to $500,000 on a new land contract.
“Richmond County landowners can use any escrow agent that meets the program qualifications to service the land contract,” said Rhodes. “Those interested in the Land Contract Guarantee Program can contact their local farm loan office to obtain a list of available nationwide escrow agents that can be used with this program.”
FSA credit programs are designed to provide credit to eligible producers when conventional or commercial credit is not available or does not meet their credit needs.
“FSA programs create opportunities for Richmond County farmers and producers, who are the backbone of North Carolina’s rural economy,” said Rhodes.
Land Contract Guarantee Program information can be obtained at the Richmond County FSA Office at 910-895-3950 or 123 Caroline St., Suite 400, Rockingham.