Help! Buying Land - Grants? Loans? etc.

Hi all,
My partner and I currently rent 7 acres of land in Northern California. Our landlord had mentioned the possibility of selling the property within the next few years, but has now recently decided to sell much sooner (i.e., within the next few months to a year). While the property is considered residential, not "agricultural", the owner granted us permission to farm here and over the last two years, we have since put in a significant amount of infrastructure, including fencing and housing for goats, poultry and cows , as well as a greenhouse and garden area, from which we are already making a profit. We love it here, and cannot bear the thought of having to part with our animals or this land. So, with that in mind, we are currently scrambling to secure any financial resources possible that may enable us to make the purchase. We are both in our late twenties, have a history of working in agriculture, good credit scores and decent income. Does anyone have experience with or suggestions for grants or loans for beginning farmers? I have done a bit of research of into USDA micro loans. Are there any other resources out there? Given time constraints, we are less prepared to make a purchase than I would have liked, so any advice regarding financial options would be greatly appreciated.
Thanks for your help!
Sara

Hi Sara, I don't know if it even exists in your area, but in Europe, there are several organisations that buy land for organic farmers and lease it to them for their career. I know at least four (covering belgium, netherlands and France and have heard about one in Italy too.
There is a youtube docu on this topic but I do not remember the name so I can't check if they went to the other side of the ocean
Anyways, if you know of a similar organisation, I'd try to get in contact with them if you want to build a commercial farm.
If you are selling produce, you might manage a crowdfunding to get some of the money from your customers? If you try this, I would make sure I have a price for the land before you start. Eg, you buy the land on the premise that you can get the money together. If you fail, the owner can sell to someone else. Be sure to put an expire date if you try this way!

Maybe someone here knows more about the USDA loans - particularly the rural home loan? I am not sure if that would work in this situation though,I am trying to find out more myself

I would ask the owner if he would consider carrying the loan.  Considering there is virtually no return on invested money, if you offer a couple of points more than banks are getting, even with no or low down payment it may be attractive enough to the owner.  If he can't do that long term consider adding a balloon payment of a couple thousand yearly or in several years a substantial balloon payment.  Just make sure you can cover whatever you promise get it all in writing, and use a title company.

Sorry I’m bumping all the threads I can find on conserving land for permaculture. We are exploring land conservancies. Ive found significant funding for some land but it has to go through a non profit organization. I’d be interested in leasing land for 99 years from a land conservancy of choice to do a project. Is this possible? Is it possible to live on the land? Maybe it would need to a be a “permaculture community land trust” to be allowed to live on the land? I’m basically interested in starting a permaculture research institute on a land held in trust with a renewable lease to be renewed by a younger permaculture practitioner when we are done. What is the most secure form of legal structure to use? Thanks

Edit: the funding I found is from a private party who wants to leave a legacy (and maybe nibble on some fruits from a food forest)

I applied for a USDA loan for women farmers.   It was a LONG process that dragged on for months,  to the dismay and frustration of the seller who regretted accepting my offer atter 4 months.   After working closely with the regional office and being told I could "expect a favorable" decision, it was denied when it went to state level for final approval.   Not enough "farming" experience so they said.   Sale fell through,  leaving everyone feeling upset.

Here in Maine, many farm land conservancies are a scam.

It stems with the number of people applying for the land, and the number of older farmers who have land and want people to get the land when they are done. Since the latter is so rare, the farmer-buyers end up being on waiting list that they must pay a fee for annually, and even if they are lucky enough to be the 1% that do get land from the deal, they end up paying a yearly fee, along with the land-owner who is selling.

For the owner it is just as much a scam. In the fine print, the legalities of the arrangement state that the conservancy can sell of portions of the land to make it financially feasible. What they mean is, they tell the farmer they will keep their land farming, but sell off the high value house lots the farm has.

They cannot even say the land will be forever in farming. A forever-farm by me was boughten up by the State by eminent domain to build a school. House lots were being sold on one side, and thus the land was expensive, but the farmland was a cheap way to get a lot of land, and so the state took that farm that supposed to be forever-farmed.

Heather Staas wrote:
I applied for a USDA loan for women farmers.   It was a LONG process that dragged on for months,  to the dismay and frustration of the seller who regretted accepting my offer atter 4 months.   After working closely with the regional office and being told I could "expect a favorable" decision, it was denied when it went to state level for final approval.   Not enough "farming" experience so they said.   Sale fell through,  leaving everyone feeling upset.

Sorry Heather you had this experience.

We almost went that route when we bought the farm from my parents, but the USDA suggested we go to private lending firms for farming, and we did. It still took 10 months to secure, but ended up working out for us.

That is always an option for people.

Sara, you haven't told us about the terms of your lease.  If your lease is for more than a year, any sale of the owner's property would be "subject to" existing lease(s), so all that would change is that you'd be paying rent to the new owner who may or may not be willing to renew the lease on expiration.  That's the danger of renting or leasing land rather than purchasing.  You never know what the future will be regarding renewal.  You can remove your fencing, shelters, etc., if you have to move elsewhere.

As to purchasing the land, talk to your county extension service regarding lenders or other options (conservancies, grants) and your county or town office regarding zoning or subdividing (if you only want to buy the 7 acres and not the entire property).  If the land you are renting is not zoned agricultural, the FDA loans won't apply, but you may do better anyway with a local bank or credit union.  I financed 80% through Farm Credit of the Virginias, but they are only in VA and WV.  There may be something similar in your area.  It might be worth taking a day off from work to make the rounds of local resources.  

Really great information, Heather.  I am sorry that things didn't work out.

Since the thread was started in 2016, I wonder how everything has worked out for all involved.

Steve Zoma wrote:Here in Maine, many farm land conservancies are a scam.

It stems with the number of people applying for the land, and the number of older farmers who have land and want people to get the land when they are done. Since the latter is so rare, the farmer-buyers end up being on waiting list that they must pay a fee for annually, and even if they are lucky enough to be the 1% that do get land from the deal, they end up paying a yearly fee, along with the land-owner who is selling.

For the owner it is just as much a scam. In the fine print, the legalities of the arrangement state that the conservancy can sell of portions of the land to make it financially feasible. What they mean is, they tell the farmer they will keep their land farming, but sell off the high value house lots the farm has.

They cannot even say the land will be forever in farming. A forever-farm by me was boughten up by the State by eminent domain to build a school. House lots were being sold on one side, and thus the land was expensive, but the farmland was a cheap way to get a lot of land, and so the state took that farm that supposed to be forever-farmed.

This:

http://www.agenda21course.com/conservation-easement-the-primary-tool-for-the-government-acquisition-of-rural-lands/

Hey, Sara, You might want to check out https://www.agloan.com/ they have an office in Salinas that might be able to help you.