Land: how to get it? That was the big question asked on the opening day of the annual Future Harvest CASA conference.

This is a recurring question, especially for beginning farmers, who, according to the National Young Farmers Coalition, cite access to land as their first barrier to entering the field.

The panelists said they wanted to buy land because it would help them grow and maintain the continuity of their operations, allow them to invest in infrastructure and soil health, and give them a valuable asset in the long run. term.

But not just any land will do.

Emma Jagoz had rented several plots of land before purchasing Moon Valley Farm in Woodsboro, Maryland.

When she was ready to buy, she looked for land that had good soil, access to water and proximity to her markets. Ultimately, she wanted a turnkey operation that she could resume without disrupting business.

Bryan Alexander of Good Dog Farm in Parkton, Maryland, had a similar wishlist. Good soil is so important that he gave this advice, which he received from a mentor: “Always take a shovel when looking at the soil. “

While owning land has obvious advantages, farmers may need to change what they are doing to afford the purchase.

Alexander and Jagoz both increased production to meet their mortgage payments.

Adrienne Granston of Cusheeba Earth said she still works full time off the farm. She and her husband plan to “prime” it until they can invest in agricultural infrastructure.

Gale Livingstone of Deep Roots Farm in Upper Marlboro, Maryland, has made the transition to farming full time.

“I’m confident in my ability as a farmer to meet my obligations, to pay my mortgage,” she said.

Many loan options

Obtaining a loan can be one of the most complicated steps in purchasing farmland.

To prepare, Alexander suggested that beginning farmers start keeping detailed financial records as soon as possible. These can establish the financial fitness of potential lenders.

Leah Peterson, the USDA Farm Service Agency’s loan officer in Prince George County, described the agency’s top four loans. All have eligibility requirements, including three years of farming experience.

The Direct Farm Property Loan has a limit of $ 600,000, a maximum term of 40 years, a current rate of 2.5%, and can be used for a variety of farm expenses, including the purchase of land, a down payment, capital improvements, conservation projects and closing fees.

FSA also offers a down payment loan for beginning farmers, with a limit of $ 300,150, a term of 20 years and a rate of 1.5%. This loan requires a down payment of 5%.

The agency offers microloans up to $ 50,000 and a term of one to 25 years at a rate of 2.5%.

FSA offers a guaranteed agricultural loan, with a limit of $ 1,776,000 and a term of 40 years.

Peterson suggested that farmers use the online discovery tool if they are interested in an FSA loan. The tool guides potential applicants through loan types based on loan use, amount requested, and location.

The main misconceptions she finds are that farmers think they won’t qualify for a loan or think they need to make a down payment. Not all loans require it.

Steve McHenry and Allison Roe represented the Maryland Agricultural and Resource-Based Industry Development Corp. Marbidco, which exclusively serves residents of Maryland, funds agriculture, forestry and aquaculture projects in partnership with other agencies.

Applicants must provide a written business plan and pro forma cash flow analysis, in addition to a balance sheet, income statement, and tax returns. Marbidco’s new Next Generation and Small Acreage preservation programs target entry-level farmers and pay up to 51% of fair market value.

Amy Rowe, credit officer at MidAtlantic Farm Credit, said people are often surprised at the number of different types of transactions her organization lends to, including cash crops, poultry, dairy, horses, horticulture and forestry.

Crédit Agricole offers land and agricultural loans, real estate loans, equipment loans and crop insurance. It also aligns annual payments with profitable times of the year for farmers, typically after harvest.

If an applicant does not have a farming history, the person will need to demonstrate how the operation will pay for itself. The Farm Finance website has a planning tool for beginning farmers that includes a sample business plan.

Emily Lerman is a project manager for the Baltimore Roundtable for Economic Democracy, a collectively managed loan fund and a member of Seed Commons, a national network of loan funds.

These funds must be non-extractive, which means that they receive no reimbursement greater than profit, no personal guarantees or guarantees, and no credit rating.

With funds from Seed Commons, you’ll “never be worse off taking out a loan,” Lerman said.

Seed Commons offers loans for the investment of secured assets, working capital and lines of credit.

Purchase against leasing

For farmers who are unable or unwilling to purchase land, a long-term lease is an option, as demonstrated by Rachel Bynum of Waterpenny Farm in Sperryville, Virginia. Waterpenny Farm resides on the property of Mount Vernon Farm.

The 40-year lease, which is to be renewed every five years, includes 30 acres of land and an existing barn and house. It sets the rent at $ 75 an acre per year plus property taxes, and this lease can be terminated with 90 days notice.

Landlords must follow organic practices and buy back the buildings at the end of the lease. The lease remains with the land if the land is sold.

Michael Kane, director of conservation at the Piedmont Environmental Council, is working on creating longer-term leases like this one.

He says he often asks farmers “how can you use a lease to manage your land?” “

His advice for landlords and tenants alike: Have a written agreement. This agreement should clearly define the area, infrastructure, duration, rent, permits and prohibitions, landowner’s right of entry, maintenance responsibilities, property improvement rights, sub- rental, taxes, insurance and notice of termination.

Models of cooperative agriculture

Agricultural cooperatives are a familiar tool for accessing markets, but some farmers also use cooperatives to gain access to land.

Cooperative farming models empower farmers in numbers.

“The people who are not sustainable are the people who are not part of a larger support network,” said Hana Newcomb of Potomac Vegetable Farms. “It takes a lot of social capital.

For Chris Newman of Virginia’s Sylvanaqua Farms, the power of co-ops is self-reliance.

“We can decide to cultivate what people need rather than what trades well in the commodities markets,” Newman said.

Yet potential partners in a shared farm will have varying amounts of farming experience and money.

To overcome these differences, members must develop the skills of other members, said Ira Wallace of Southern Exposure Seed Exchange.

Participants also need to communicate well and be accountable for their responsibilities, said Blain Snipstal of Earth-Bound Building, a construction and farming co-op in southern Maryland.