- Vermont residents who will be engaged in agriculture within the state and are able to demonstrate their operation can generate sufficient cash flow to service debt;
- A current or prospective owner/operator of agricultural land, equipment and/or livestock in Vermont;
- Must be sufficiently educated, trained or experienced in the operation and management of the type of agricultural operation for which financing is sought.
Farm Ownership Loans may be used to:
- Acquire or enlarge a farm, agricultural facility or forest products business;
- Make capital improvements, including construction, purchase and improvement of buildings;
- Promote soil and water conservation and protection;
- Refinance indebtedness incurred for farm/business purposes.
Farm Operating Loans may be used to:
- Purchase livestock, machinery and equipment, or fixtures;
- Pay annual operating expenses of a farm operation, forest products business or agricultural facility;
- Pay loan closing costs;
- Refinance indebtedness incurred for operating loan purposes;
- Finance lines of credit.
Farm Loan Rates and Terms
- As of July 1, 2014, maximum aggregate loans outstanding to any borrower at
any time may not exceed $2 million. This limit is subject to adjustment;
- Eligible VACC loans may be guaranteed by the USDA Farm Service Agency;
- Attractive variable or fixed interest rates based on VACC’s cost of funding; ( see Current VACC Rates; )
- Consistent with conventional lending practices, VACC secures its loans with mortgages and/or security interest in available collateral;
- Terms will be matched to the life of the asset being financed. Maximum term is
- One-time .5% commitment fee at closing (minimum fee $250; maximum fee $2,500; this does not include the FSA guarantee fee);
- $25 credit report fee;
- $18 flood insurance certification (if required);
- Appraisal reimbursement unless loan is denied;
- Document recording/discharge fees;
- No application fee.
- Loans up to $350,000 may be approved internally by VACC staff;
- Loans exceeding $350,000 are presented to the VACC Board monthly for consideration;
- Applicants are advised to discuss their proposed project with VACC staff prior to submitting the application;
- Applications may be downloaded or obtained from the VACC office.