Land Contract Guarantee Program with Farm Service Agency

Maine Farmland Trust can act as an Escrow Agent for Farm Service Agency’s Land Contract Guarantee Program.

This program is a loan guarantee program that allows the owner of a farm to sell a property through a land contract to a beginning or socially disadvantaged farmer (as defined by USDA) and enjoy the benefits of having an amount equal to 3 amortized annual payments of their (the seller’s) financing guaranteed under the prompt payment guarantee for purchases up to $500,000.

A land contract is a form of owner-financing that allows the buyer to make installment payments towards the purchase of the property; the buyer does not receive the deed to the property until all of the contracted payments have been made.

Farm Commons put together this free toolbox, Financing Farmland Through an Effective Land Contract, for you to learn more about land contracts. Follow the check out process to get the free download.

To learn more about the Land Contract Guarantee Program, download FSA’s National Fact Sheet on the program.

To learn more about whether you and a seller meet FSA’s qualifications for a loan guarantee, contact your local Farm Service Agency office.