Eligibility

• Vermont residents who are or will be engaged in agriculture within the state; and
• A current or prospective owner/operator of agricultural land or equipment and/or livestock in the state.

Loan Purposes:

Farm Loan: Ownership:

• To acquire or enlarge a farm or agricultural facility;
• To make capital improvements, including construction, purchase and improvement of farm and agricultural facility buildings;
• To promote soil and water conservation and protection;
• To refinance indebtedness incurred for farm ownership; and
• VACC’s interest rate is variable, and is based on VACC Prime (currently 4%), minus .5%.

Farm Loan: Operations:

• To purchase livestock, farm equipment, or fixtures;
• To pay annual operating expenses of a farm operation or agricultural facility; and
• To pay farm loan closing costs and refinance indebtedness.

Farm Loan Rates and Terms

• Maximum aggregate loan size is set at FSA limitation;
• Attractive variable or fixed interest rates based on VACC’s cost of funding; see Current VACC Rates;
• Most VACC loans will be guaranteed by the USDA Farm Service Agency; and
• Terms will be matched to the life of the asset being financed; maximum term is 20 years.

Fees

• .5% commitment fee for VACC (this does not include the FSA guarantee fee);
• $250 minimum;
• $2,500 maximum;
• $25 credit report fee;
• $18 flood insurance certification (if required);
• Appraisal reimbursement unless loan is denied;
• Document recording/discharge fees; and
• No application fee.

Application Process

• Farm loans up to $350,000 may be approved internally by VEDA staff;
• Farm loans exceeding $350,000 are presented to the VEDA Board monthly for consideration;
• Applicants are advised to discuss their proposed project with VACC staff prior to submitting the application; and
• Applications may be downloaded or obtained from the VACC office.