Land Contract Guarantee Program

The USDA Farm Service Agency (FSA) has a Land Contract Guarantee Program designed to help beginning or socially disadvantaged farmers and ranchers build the foundation for a successful career in agriculture. 

The Land Contract Guarantee Program provides a valuable tool to transfer farm real estate to the next generation of farmers and ranchers. This program essentially provides two different types of payment guarantees to landowners willing to sell land to beginning or socially disadvantaged farmers or ranchers on contract. 

The first type of guarantee is the Prompt Payment Guarantee which can provide a guarantee of up to three amortized annual installments plus the cost of any related real estate taxes and insurance. The second type is the Standard Guarantee, which guarantees up to 90 percent of the outstanding principal balance under the contract. 

To qualify, buyers must meet eligibility requirements similar to those for the Guaranteed and Direct Farm Ownership programs. 

For more information contact your local FSA office. 

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