Maryland Agricultural & Resource-Based Industry Development Corporation

 

Next Generation Farmland Acquisition Program
(“Next Gen Program”)

To apply, see the Application page

The Maryland Agricultural and Resource-Based Industry Development Corporation (MARBIDCO) announced today that the Next Generation Farmland Acquisition Program ("Next Gen Program") with reopen with a "Mini Winter Round" to help qualified young and beginning farmers who seek to purchase farmland, but need some specialized financial assistance to enter (or continue in) the agricultural profession in exchange for helping to preserve the farmland.

The Next Gen Program is basically a rapid-response, farmland conservation easement option purchase program, designed to help facilitate the transfer of farmland to a new generation of farmers, while also effectively helping to preserve agricultural land from future development. The selection for participation in this program is expected to be competitive.

Through the Next Gen Program, MARBIDCO will pay up to 51% of the Fair Market Value (FMV) of the farmland only (with a cap of $500,000) with these funds being provided as a down-payment at a real estate settlement, and with MARBIDCO taking an option on a farmland preservation easement purchase. This is designed to enable a commercial lender to also make a loan to help with the purchase of a farm. The Next Gen Farmer will then have a period of several years to sell the permanent conservation easement on the farmland to a rural land preservation program (thus extinguishing the development rights on the property forever). If the Next Gen Farmer cannot sell the permanent easement within the specified timeframe, the purchase option will be exercised to grant the permanent easement to a statewide or local rural land trust.

While there is no age restriction to participate in the program, persons who are "beginner farmers", or those not owning a farm or ranch (or owning less than 10 acres), not operating a farm or ranch as a principal operator for more than 10 years, and have at least one year of farming experience, will have a greater likelihood of being selected to participate.

Persons interested in applying to the Next Gen Program are requested to make contact with their county farmland preservation program office (in the county in which the farmland is located) by no later than Monday, November 20, 2017, to discuss the suitability of a subject farm being permanently preserved. Moreover, certain required paperwork prepared by farm property sellers must be received in the county office by no later than November 28, 2017.

The formal Next Gen Program application deadline (including submission of all required forms and related attachments) is Wednesday, December 20, 2017; by no later than 4:00 p.m., at the MARBIDCO offices in Annapolis. Late applications will not be accepted.

 

In addition, it is advisable that all prospective Next Gen applicants should have the following items in process during the month of November 2017:

  • A contract of sale for the subject farm property is negotiated and ratified.

    Note: It is recommended that these purchase contracts not expire before the end of February 2018, and that there be a provision for the return of an earnest money down-payment to the beginner farmer in the event that NGFAP funding is not approved. It is also suggested that these contracts specify whether the buyer and/or the seller will be responsible for paying the costs of the required land property survey, as well as other closing costs.]

  • Be in contact with their respective county agricultural land preservation administrator or designee to discuss the subject farm property (as this individual will play an important role in the application process).

  • Have a written farm business plan developed.

A Next Gen Farmer will also need to seek the participation of a commercial bank or Farm Credit Association to provide a portion of the farm purchase financing, but a firm bank loan commitment is not needed by the December 20 application deadline. Rather, the Next Gen Farmer will have a short window of time after being notified of approval, to arrange for commercial lender financing and submit a loan commitment letter to MARBIDCO.

Further information about the Next Gen Program may be obtained by contacting Allison Roe, Financial Programs Associate, at (410) 267-6807, or aroe@marbidco.org

Important Dates

November 20, 2017: Deadline for Next Gen Program applicants to contact their respective County Agricultural Land Preservation staff.

December 20, 2017: Submission deadline for Next Gen Program applications by no later than 4:00 pm in the MARBIDCO office in Annapolis (or postmarked by December 18, 2017).

Back to Top

Available Now
(November 1, 2017)

 

Important Dates

November 20, 2017: Deadline for Next Gen Program applicants to contact their respective County Agricultural Land Preservation staff.

December 20, 2017: Submission deadline for Next Gen Program applications by no later than 4:00 pm in the MARBIDCO office in Annapolis (or postmarked by December 18, 2017).

 


 

Copyright 2006. All rights reserved.