Farm loans and financing in Kentucky

Connect farm experience with the proposed ownership step

Kentucky’s Agricultural Finance Corporation offers a Beginning Farmer Loan Program designed to help qualifying applicants establish or expand their place in agriculture through participating finance. Its guidelines examine the applicant and project, including relevant farm experience; the program should not be presented as an unrestricted award for anyone with no agricultural background. A proposed purchase, ownership share or investment needs a documented business purpose and a workable plan for meeting the borrower’s responsibilities after the transaction.

Coordinate public participation and lender approval

Central Kentucky Ag Credit is a regional agricultural lender to consult about farm property and business borrowing within its territory. If public participation is being considered, ask the lender and program administrator to confirm how their approvals and security arrangements fit together. Family transfers deserve a clear valuation and written explanation of which land, livestock or equipment changes hands. Include taxes, professional costs and the operating reserve in the financing plan so the entry into ownership does not immediately create a separate shortage of production cash.