South Dakota Agriculture Department Helps Beginning Farmers
PIERRE – The South Dakota Agriculture Department says it can help beginning farmers buy land at lower interest rates through a bond program.
The Beginning Farmer Bond program works through a local bank to finance a land purchase. The bond program allows a lender to get tax-exempt interest for a loan or contract sale, and that lowers the interest rate paid by a beginning farmer.
To take part in the program, a beginning farmer must be a South Dakota resident at least 18 years old and have a net worth of less than $400,000. The maximum amount of a beginning farmer bond is $501,100 for calendar year 2013.
The South Dakota Agriculture Department administers the program through the Value-Added Finance Authority board, which reviews applications and issues bonds for approved projects.
Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.