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Whether you're a college graduate interested in farming or considering a career in agriculture, now may be the best time ever to secure low-cost financing to buy your first farm.

That is possible through the popular beginning farmer bond program offered by the Illinois Finance Authority (IFA).

Beginning farmers, as well as farmers who have never owned their own property, can now borrow up to $470,100 to buy that first operation. The program's previous lending limit was $250,000.

Additionally, more beginning farmers may take advantage of the program because Gov. Pat Quinn set aside a record $25 million in funding for eligible beginning farmer bond applicants in 2010.

It's the highest level of lowcost capital available for Illinois' beginning farmers since the program was launched more than 25 years ago.

The beginning farmer bond program is a great tool for producers purchasing land for the first time, whether you have been farming for years, starting your own farming operation, or just coming back to the farm after college.

The program provides financing for land purchases for beginning farmers at a reduced or below-market interest rate. The IFA issues a single tax-exempt bond to the lender, who finances the land purchase.

The borrower benefits from this IFA partnership because the lender can pass on the savings to lower your interest cost and ultimately your land payment.

Applicants do not need prior farming experience or a down payment toward the purchase to be eligible. While there are no requirements of farm income as a percentage of total income, the producer should either be involved in farming or become involved in farming with the purchase of the property. Purchases from relatives also are allowed under the IFA program.

Eligibility requirements for the beginning farmer bond program are fairly broad. An eligible applicant should:

• Be at least 18-years old;
• Be an Illinois resident;
• Have a net worth of less than $500,000;
• Have limited land ownership prior to the purchase; and
• Be purchasing farmland located in Illinois.

The rules on prior land ownership vary by county throughout the state, so please visit the IFA website at {www.il-fa.com} to learn about the limits in your individual county.

This program may also be used in a contract-for-deed scenario, whereby the seller holds the bond and finances the land on a contract purchase.

Before 2009, the individual loan limit for the beginning farmer bond program was $250,000; however, after significant efforts by the IFA and others across the country, the loan limit was increased to $470,100 in the 2008 farm bill.

The legislation governing the loan limit now carries the ability to increase the maximum amount each year, based on inflation.

Illinois is the second largest among states that use the beginning farmer bond program.

IFA partners with local banks throughout the state, which secure financing for beginning farmers under the program. Contact your local banker or call 618-244-2424 for a list of participating lenders who are experienced with the beginning farmer bond program.

Applicants must be approved for financing under their bank's underwriting guidelines and credit standards.

IFA provides expert, hands-on support to help farms and businesses obtain the capital needed for growth. To strengthen Illinois businesses and the states economy, the IFA provides access to lowcost, non-conventional financing, through banks, and other sources.

IFA secures financing for farms, manufacturers, businesses, local governments, hospitals, and other non-profits.

The agency is continually seeking new opportunities and invites developers, financiers, and community partners to see how IFA can help.

If you have any questions or want to find a participating lender in your area, please don't hesitate to contact me.

For more information or to request an application for the beginning farmer bond program, contact the IFA's Mt. Vernon office at 618-244-2424 or visit us at {www.il-fa.com}.

Eric Reed is the IFA regional manager for the downstate counties and is responsible for all agricultural programs.