Funding for Delaware’s Young Farmer Loan program is at its highest level in several years— but the program hasn’t gotten any applications yet this season.
The state Department of Agriculture’s Young Farmer Loan program offers 30-year, no-interest loans to Delaware farmers between the ages of 18 and 40 to help them purchase land. The program has $3 million to loan out this year.
“We hope that we’ll get some applicants for this current round,” said Deputy Secretary Austin Short. “We’ve not received any as of yet.”
This year’s application period closes October 31st. Short notes that other previous years the program has not recieved applications until the last month before the deadline.
Short says since the program started in 2011, it has given out 33 loans to young farmers.
Loans through the program cover up to 70 percent of the development value of the farm— up to $500,000. According to officials, this tends to be roughly half the purchase price of the land.
Short says the cost of land is the biggest barrier to young people getting into farming. He adds the loan program helps chip away at this hurdle for an age group underrepresented in the industry.
“We need it from that age group. If you look at the average age of farmers, not just in Delaware but nationwide, it’s near retirement age," he said.
Applicants to the Young Farmer Loan Program cannot have a net worth exceeding $300,000.
Short notes land purchased with a loan from the program is placed into a permanent conservation easement.
"If for some reason the young farmer decides farming is not for him or her and they eventually sell the farm, it's still protected permanently from development," he said.
The Young Farmer Loan Program requires applicants have a fully executed sales contract on the land they’re buying and a business plan.
