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AgStart Young, Beginning, and Minority Lending Program

“Frontier Farm Credit’s AgStart program made it possible for me to get my farming enterprise going. I went in looking for a loan and ended up getting strategic financial advice as well as learning things that will be important to my success for years to come.”

Opening the door to production agriculture.

You’ve heard it a thousand times—getting a start in agriculture can be tough. That’s why Frontier Farm Credit is committed to lending a hand with AgStart, a financial and educational resource dedicated to helping young, beginning and minority farmers and ranchers reach out for the opportunities of American agriculture.

AgStart is about more than loans. As a leader in the agricultural community, and the largest ag lender in Kansas, Frontier Farm Credit has designed programs tailored to the needs of tomorrow’s farmers and ranchers. With unparalleled financial expertise and partnerships spanning the eastern Kansas agricultural landscape, Frontier Farm Credit is in a unique position lend a hand to those who need it.

Who’s qualified?

Young farmers and ranchers — Those who are 35 years old or younger when they apply for a loan.

Beginning farmers and ranchers — Anyone with 10 years or less experience managing any part of a farm or ranch operation.

Minority applicants — Farmers or ranchers who meet USDA’s definition.

A focus on youth.

Frontier Farm Credit backs up its commitment to agricultural youth and the future of farming and ranching. The AgStart Youth lending program includes mentoring by Frontier Farm Credit financial analysts and other experts to educate young people about financing and project management.

Frontier Farm Credit also supports agricultural youth in a number of outreach programs, including a partnership with Kansas State University’s Department of Agricultural Economics to sponsor K-State’s Student Board of Directors, a project that is aimed at developing critical thinking and decision-making skills. In addition, Frontier Farm Credit annually awards scholarships to promising students who are customers or dependents of customers.

To qualify for AgStart Youth Loans, applicants must be 10-19 years of age at the date of application and must be a member of a qualifying organization such as 4-H or FFA. Loan use is limited to direct expenses related to a project associated with a qualifying organization.

Youth loan criteria include:

  • $2,500 loan maximum.
  • One-year loan term maximum with all principal and fee due at maturity.
  • A project finance fee based on the amount financed and set at the time of closing.
  • Parents/guardians are not required to sign the promissory note but will be involved with the application process. Parents or guardians are not required to be Frontier Farm Credit customers.
  • The youth applicant must fill out an application with projected income and expenses. Actual income and expense will be tracked and discussed at the end of the project.

The AgStart lending programs:

Operating loans:

  • Loan funds may be used for the purchase of market livestock, crop input expenses or general operating expenses.
  • $100,000 maximum with the amount approved supported by projected expenses.
  • Up to one-year loan term.
  • Applicants must complete a balance sheet, a projected cash flow or breakeven analysis for the year, and a marketing plan for their operation.

Term loans:

  • Loan funds can be used to purchase breeding livestock, machinery and equipment, refinance of existing term debt, real estate and improvements.
  • $150,000 maximum for total equipment or breeding stock loans and a $250,000 maximum for real estate loans.
  • Seven-year term maximum on ITL and must be fully amortized. Maximum term for real estate loans is 30 years.
  • Maximum of 90% loan to purchase price on equipment or breeding stock.Maximum of 75% loan to purchase price on mortgage loans.
  • Applicants must complete a balance sheet, projected cash flow, and a copy of their past three years of income and expenses if available.

First-time ag real estate buyer:

  • Applicants must operate the land.
  • Land must be primarily ag-use. If a dwelling is included it must be less than 50% of the total value.
  • $250,000 loan maximum.
  • 30-year loan term maximum.
  • 85% loan to AV maximum. FSA guarantee may be requested.
  • Applicants must complete a balance sheet, projected cash flow, and a copy of their past three years of income and expenses if available.