Next Generation Farmland Acquisition Program (Next Gen)
The Next Generation Farmland Acquisition Program (Next Gen) helps qualified young or beginning farmers who face challenges entering agriculture due to high farmland costs and limited access to financial capital for purchasing land.
The Next Gen Program tackles two main challenges: 1) Assisting young or new farmers in purchasing farmland through financing options; and 2) Securing a sustainable future for Maryland's agriculture by preserving working farms for upcoming generations.
Overview
This program helps beginning and first-time farmers to purchase farmland. The Next Gen Program is a farmland conservation easement purchase program designed to facilitate the transfer of farmland, typically over 50 acres, to a new generation of farmers while preservingfarmland conservation easement option purchase program designed to help facilitate the transfer of farmland that is typically over 50 acres to a new generation of farmers while helping to preserve the agricultural land from future development.
Under the Next Gen Program, MARBIDCO will pay up to 51% of the Fair Market Value (FMV) of the land only (with a cap of $500,000). Following the land sale transaction, the Next Gen Farmer will have several years to sell the permanent easement to a rural land preservation program that is able and willing to hold the permanent easement - thus extinguishing the development rights on the property forever).
Once a permanent easement has been facilitated, the Next Gen Farmer will repay MARBIDCO the original Next Gen Program Option Purchase amount plus a 3% administrative fee. If the Next Gen Farmer cannot sell the permanent easement within the specified timeframe, the Option will be exercised (for no additional money) and the permanent easement will be held by a “third-party default easement holder” (either a county agricultural land program or a private land trust designated by MARBIDCO).
Who can apply?
While there is no age restriction to participate in the program, persons who are “beginner farmers” will have a greater likelihood of being selected to participate. A “beginner farmer” is defined as not owning a farm or ranch (or owning less than 20 acres), not operating a farm or ranch as a principal operator for more than 10 years, having at least one year of farming experience, and expecting to participate in the farming operation on the property.
Contact County Ag Preservation Program Office
Interested in applying to the Next Gen Program? Contact the county ag preservation program office in the county where the farmland is located, no later than a month before submission, to discuss the suitability of a subject farm being permanently preserved. Moreover, the required paperwork from farm property sellers must be received by the county office no later than a month in advance.
In addition, prospective Next Gen farm buyer applicants should have the following items in the process:
A contract of sale for the subject farm property is negotiated and ratified (by the application deadline).
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 detailed farm business plan developed.
Commercial Lender Participation Is Required
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 purchasing financing, but a firm bank loan commitment is not required until a Next Gen Farmer has been approved for Next Gen funding.
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. Therefore, MARBIDCO strongly encourages prospective Next Gen applicants to contact a commercial lender during the application process to get a clear sense of the lender’s financing requirements.
Further information about the Next Gen Program or to submit a completed application, contact Allison Roe, Financial Programs Officer/Program Coordinator, by telephone at: (410) 267-6807, or by email at: aroe@marbidco.org.
The Next Gen Program application deadline (including submission of all required forms and related attachments) is monthly, with applications due on the last business day of each month by no later than 4:00 p.m. at the MARBIDCO office in Annapolis.
For business planning resources, download the University of Maryland Extension and Agriculture Law Education Initiative flyer. Additional resources can be found on the MARBIDCO resources webpage.