Vermont Agricultural Credit Corporation

Eligibility

  •  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.

Loan Purposes:

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
    20 years.

Fees

  • 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.

Application Process

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