AG land (lease, mortgage, refinance)

[Mark.ca]

Hi there!
Been reading the forum for over a year for various info and i can say it's a great resource. There is however something i just can't find. I try using the search option but it never finds anything for me so here is my question.... Any of you know any lender that will finance the purchase of agricultural land? I know the construction loan option but was wondering if anyone will lend just against the land with maybe 50% down or something. I did call a few places with no luck so far. I do not currently live on the island.
Thanks for any suggestions.

[OpenD]

That depends... are you going to use it for farming? Do you have 3 years experience farming?

If your answers are yes and yes, then take a look at the USDA Farm Service Agency programs, including their Beginning Farmers and Ranchers program.

FSA - Farm Loan Programs

[Mark.ca]

No, no farming yet.
I was looking at a more conventional way of purchasing it. I know First Hawaiian is doing a loan for ag land that is interest only for 3y and then you either pay up or transform it into a regular mortgage if already have built on it.

[oregonwoodsmoke]

USDA farm loans is the one that comes to mind.

Many farms are purchased all cash.

You might call your local Farm Bureau agent and ask if they know of anyone who finances farms. They might be hooked up with someone. Also, call the extension agent.

Farm land in Hawaii tends to be fairly small-ish pieces. So ask about how much land can be included with a home mortgage. Banks are going to vary, but it might be 3-5 acres. That's a pretty expensive chunk of farm land on any of the Hawaiian islands, and it is probably enough for a farm with tropical fruits or cut flowers.

You can buy chunks of agricultural zoned land in Puna for rather inexpensive, but they aren't really farm land. It takes excellent soil to run a farm, unless you are going to grow something in greenhouses.

[KaraBenNemsi]

Bank of Hawaii or First Hawaii Bank would be my first go-to places to inquire.

These local banks are also more experienced with leasehold property which often are much lower priced ag-lands in the best locations. Don't shy away from leasehold when it comes to agriculture! They have about 35 or 40 year lease terms and can be resold/refinanced within that time period.