- 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.
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 loans outstanding to any borrower at any time may not exceed $1,355,000. This limit is subject to adjustment each year;
- 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.
- .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.
- 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.