Olympic Peninsula Conservation Programs

Land Contract Guarantee Program

Program level:

National

Land use:

Agriculture

Provider:

USDA Farm Service Agency

Benefits provided: 

Free technical assistance

Water-focused program: 

No

Valuable tool to transfer farm real estate to the next generation of farmers

Overview

Description:

Guarantees will be offered to the owner of a farm who wishes to sell real estate through a land contract to a beginning farmer or a farmer who is a member of a traditionally underserved group. The guarantee provides an incentive to sell to individuals in these groups as it reduces the financial risk to the seller due to buyer default on the contract payments. Guarantees can be used for financing the purchase of a farm with a purchase price up to $500,000. Two types of guarantees are available: a prompt payment guarantee for up to three amortized installments, or a standard guarantee of the unpaid principal.

A land contract is an installment contract between a buyer and a seller for the sale of real property, in which complete ownership of the property is not transferred until all payments under the contract have been made.

Eligibility:

Guarantees can be used for financing the purchase of a farm with a purchase price up to $500,000 on a new land contract.

The guarantee period is for up to 10 years for either type of guaran- tee, regardless of the term of the land contract.

Financial benefit: 

Varies

Contact information

Contact person: 

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Organization:

Phone number: 

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Email: 

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Information last updated on December 1, 2020.

Planning Importance

Developing a forest, agricultural, or conservation plan helps articulate and prioritize objectives for landowners. These objectives can determine what type programs to search for. Supporting organizations in your area often provide free consultation and planning.

Supporting Organizations

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Landscape Characteristics

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