Next Generation Farmer Loan

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Next Generation Farmer Loan Program Summary

  • Provides federal tax-exempt mortgage financing to reduce a farmer’s interest rate for capital purchases
  • Administered through the York County Industrial Development Authority (YCIDA)

Eligibility Requirements

  • Permanent Pennsylvania resident
  • Must be 18 years or older to apply
  • Able to meet lender’s credit standards
  • Access to adequate working capital, farm equipment, etc.
  • Borrower must not have had any prior ownership of a substantial portion of land
  • Borrower must be the sole owner and principal user of the project
  • Borrower’s net worth cannot exceed $500,000 as an individual or $1,800,000 as a partnership

Uses and Purposes of Funding

  • Agricultural land
  • Agricultural improvements
  • Depreciable property
  • Purchased from related persons
  • No portion of the loan proceeds may be used for the purchase of a residence


  • Up to $520,000; however, the total loan proceeds allocated to the purchase price of used equipment may not exceed $62,500

Interest Rate

  • Determined by the lender


  • Determined by the lender


  • $500 non-refundable application fee, which is applied to closing fee
  • Closing fee of 50 basis points of the loan amount
  • YCIDA legal fees
  • Annual audit fee, which is based on annual cost
  • Board action fee for board actions subsequent to closing the financing