Beginning Farmer Program
Designed to back below-market interest rate financing for eligible agricultural land, construction/improvements, breeder livestock and equipment for qualified farmers.
If you have any questions about the Beginning Farmer Program, please contact CDLAC.
Beginning Farmer Bonds are used to help farmers finance construction or improvements on their property, or the purchase of agricultural land, breeder livestock or equipment. Under the program, a conduit bond issuer applies to the California Debt Limit Allocation Committee (CDLAC) for an allocation of Beginning Farmer Bonds.
How does it work? Once CDLAC approves allocation, the issuer brings together farmers, financial institutions, contract sellers or investors to negotiate terms of a transaction. The issuer then sells the bonds to finance the loan, sale or investment. Eligibility, permissible items and loan limits are set by the Internal Revenue Code.