What Should You Know Before Applying for an Agriculture Loan for Purchase of Land?


Whether you want to start a farm or expand your current operations, buying land will bring you closer to your goals. The key is to choose land that suits your needs and meets the lender’s criteria to increase your chances of getting approved for a loan.


Here at Private Capital Investors, we can help you secure the right agriculture loan for purchase of land. Before approving your application, we assess various factors to help ensure that you’re investing in a property with profit potential.


Characteristics of the land

Before you can find the perfect farm land loan, you must decide how big you want your farm to be, what you want to grow, and your customer base. Understanding your requirements lets you develop a solid business plan, find a suitable piece of property, and ultimately increase your chances of getting approved for an agriculture loan for purchase of land.

Lenders also want to know the key characteristics of the land you wish to purchase, so make sure to assess the following:


  • Soil fertility –The quality and success of your farming production will depend significantly on soil fertility. Soil quality affects the quality of your crops, so check for loose and aerated soil with good drainage and optimum levels of organic matter.


The best way to determine soil quality is to conduct a soil test. This test will help you establish realistic expectations and identify ways to enhance the soil’s health. Ideally, you will want to find farmland with already healthy soil so you won’t have to spend too much time improving its quality.


  • Climate zone –Modern farming techniques and technologies like greenhouses and hoop houses now make it possible to extend growing seasons for your farm. However, it would help if you learned the region’s local climate where you plan to buy your land. This is also one of the factors lenders look at before approving an agriculture loan for purchase of land, as it can affect production.

Look into elements like the area’s average temperatures and the number of frost-free days in a year, as these can help you determine whether the land is suitable for long-term food production. Check the Web Soil Survey and other credible resources to understand the potential of various production sites.


  • Proximity to potential markets– Your proximity to potential markets is heavily influenced by how well your crops sell. Research the specific region you’re considering. What crops are already popular? Is there a demand for what you plan to grow?

Consider how far you’ll need to transport your crops to reach your target market. Frequent long hauls can eat into your profits and impact the freshness of your produce. Finding land closer to your customer base minimizes these issues.


  • Space for farming—Lenders will also check the size of the farming space when approving an agriculture loan for the purchase of land.If you plan to farm without a tractor, a smaller, more manageable area of around two acres or less might be ideal.


The scale of your land also impacts your labor requirements. Choosing the right size will help you avoid overextending yourself and manage the workload effectively.


  • Water drainage—Some areas might require additional drainage support even with a slope. Identify any low spots where water could pool and determine whether drainage ditches or raised planting beds are needed to prevent waterlogged soil.


  • Access to a suitable water source– Consistent access to a reliable water source is vital for a mixed vegetable farm. This becomes even more important if you’re considering buying land in an area with unpredictable rainfall. Will you be drilling a well or utilizing an existing water source like a river, pond, or lake? Each option has advantages and potential challenges regarding access, permits, and water quality.


Agriculture loan eligibility requirements


Aside from familiarizing yourself with the qualities of your potential farmland, take the time to learn your prospective lender’s eligibility requirements when it comes to agriculture loans for the purchase of land. 

Here, Private Capital Investors, we offer a range of agriculture loans for purchasing land. Our financing solutions cater to different agricultural pursuits. We offer loans for:

  • Hobby farms
  • Full-time farming
  • Part-time farming
  • Established farms
  • Specialized agriculture (orchards, cattle ranches, citrus farms, poultry operations, and more)
  • Rural and vacant land


You can also use our agriculture loan for:

  • Opportunity purchases
  • Traditional acquisitions
  • Expansion projects
  • Short-term needs
  • Diversification ventures


Our agriculture loans for purchasing land boast competitive features:

  • Long-term financing (extended repayment terms with our 30-year amortization option and no prepayment penalties)
  • Flexible loan amounts ranging from $3 million to $50 million
  • Competitive credit score requirements (minimum credit score of 680)
  • Fast turnaround (approved and closed within 14 days or 2 weeks)
  • Flexible fixed or adjustable interest rates
  • Nationwide lending
  • High loan-to-value ratio (up to 70%)



When you apply for an agriculture loan to purchase land, we look into your farming experience and credit history. We also check the sustainability of your business plan. It outlines how you will use the loan to ensure profit and sustainability.


Why choose Private Capital Investors for your agriculture loan?


Our seasoned loan officers understand how challenging and unpredictable a farming business can be, which is why we offer various options for agriculture loans for purchasing land. You can count on us to work closely to create a tailored financing plan for your unique situation. This ensures you have enough support to grow your business and make it thrive.


Our nationwide lending capabilities enable us to provide an agriculture loan for land purchase to clients in different states and cities, including Miami, Massachusetts, Texas, Phoenix, and Denver. We have years of experience helping landowners and farmers acquire the ideal cultivable land for their businesses.


If you’re interested in an agriculture loan for purchasing land, call 972-865-6206 or email info@privatecapitalinvestors.com to consult our loan officers.

Want to learn more? Get in touch with us today.

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