The Agricultural and Small Business Development Authority administers a program that enables lenders to receive federally tax-exempt interest on loans made to beginning farmers. The tax savings are passed on to beginning farmers in the form of lower interest rates. A qualified borrower can borrow up to $509,600 to buy:
- agricultural land
- farm buildings
- farm equipment
- and breeding livestock
The maximum loan is $509,600. Of this amount, depreciable agricultural property may not exceed $250,000, with a limit of $62,500 for used depreciable property.