Most people working in the agricultural industry today have at least heard about the benefits of securing a land loan. Still, there tends to be a fair bit of confusion surrounding how and why someone should apply for a loan. Farmers who are just getting started, in particular, often have difficulty navigating the farm loan application process. And no wonder! There’s a lot of misinformation out there, and some lenders make the process more opaque than it needs to be.

But that doesn’t mean that the process of applying for a beginning farmer’s loan has to be difficult. Not at all! In fact, when you work with the right lender, it can be an extremely straightforward experience. 

Applying for a Land Loan in Three Easy Steps

The process of applying for a land loan can be broken down into three very simple steps:

  • Articulate your business goals. No two farms are exactly alike. In the same way, every farmer has his or her own financial goals, budget, and long-term business plans. Given those facts, it’s vitally important to start out the loan application process by clearly defining your own business goals. That way, lenders will have a clear idea of your long-term plan to eventually repay the loan.


  • Do your market research homework. It isn’t enough to merely show a lender that you have a production plan in place. You’ll also need to prove that there is a reliable demand for your products which will produce a revenue stream. This will require some diligent background research into the marketplace as it currently stands.


  • Organize your financial documents. In order to qualify for a land loan, you’ll need to demonstrate the full scope of your financial credit. In other words, you’ll need to gather the paperwork which will prove to a lender that you’re a reliable borrower. Here are some of the financial documents that you’ll need to have with you before you apply for a loan:
    1. Income Statement
    2. Sources and Uses of Funds Statement
    3. Insurance documents
    4. Credit report

Get Started with Applying for a Land Loan Today!

At MSF Agriculture, we’ve streamlined the loan application process to make it easy for farmers at all levels of experience. Our lenders will help you to understand your business goals and formulate a payment strategy that will work for you. To learn more about our application process or to get started applying for a land loan, please contact us today!