Next Generation Farmer Loan Program
🏛 Pennsylvania Department of Community & Economic Development
✓ Free, no account · Source: Pennsylvania Grants (CODE PA) · Last verified Sep 18, 2026
Can you apply?
This grant is for farmers and agricultural operations seeking capital financing for land and equipment purchases. Applicants must be beginning or next-generation farmers eligible under Pennsylvania's agricultural lending criteria. The program operates statewide in Pennsylvania and uses federal tax-exempt financing to reduce interest rates on qualifying capital purchases.
Eligible activities include purchasing farmland, agricultural machinery, equipment, and other capital assets needed for farm operations. The program is designed to support farmers entering agriculture or expanding their operations through lower-cost financing.
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Program description
The Next Generation Farmer Loan Program uses federal tax-exempt financing to reduce a farmer’s interest rate for capital purchases, such as the purchase of farm land or agricultural machinery and equipment.
Who can apply
Eligible applicants
How to apply
Application links
Required documents
- Completed loan application
- Personal and business financial statements
- Farm business plan
- Tax returns (typically 2-3 years)
- Documentation of farm experience and credentials
- Itemized list of capital assets to be purchased
FAQ
Who can apply for this loan program?
Next-generation and beginning farmers in Pennsylvania are eligible. Applicants must meet the program's agricultural lending criteria.
What can the financing be used for?
Funds support capital purchases including farmland, agricultural machinery, equipment, and other farm capital assets.
How does the tax-exempt financing work?
The program uses federal tax-exempt bonds to reduce interest rates on loans. This lowers your borrowing costs compared to conventional farm loans.
Is there a cost-sharing requirement?
No cost-sharing or match is required to participate in this loan program.
How do I apply?
Contact the Pennsylvania Department of Community & Economic Development for application details and current loan terms.
💡 Tips for applicants
- Prepare detailed financial statements and farm business plans before applying. Lenders want to see strong business fundamentals.
- Document your agricultural experience and training. The program prioritizes beginning farmers and next-generation operators.
- Have a clear capital purchase plan identified. Know exactly what land or equipment you need and why.
- Gather all farm operation records and tax returns for review. Lenders require comprehensive financial history.
- Contact the Pennsylvania DCED early to understand current lending terms and available loan amounts.
⚠️ Common mistakes
Incomplete or outdated financial documentation weakens applications. Weak or unclear business plans for how capital purchases will improve farm profitability hurt competitiveness. Applicants underestimate the importance of demonstrating agricultural experience and management capacity.
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