Hobby farms are a popular way to participate in small-scale agriculture for people interested in the lifestyle without wanting to farm full-time. While we also provide commercial and land loans, hobby farms are one of our specialties at United Ag Lending.

What makes a hobby farm different is that it’s not usually financially motivated.  Hobby farmers have a primary income they get elsewhere, whether that’s from a full-time job or a retirement fund. The sole purpose of a hobby farm is for a farmer to be able to focus on a type of farming as a hobby they use for enjoyment. 

Many of our competitors have strict limitations on what you’re able to accomplish with hobby farm loans. However, that’s not the way we do things. At United Ag Lending, we offer financial flexibility with our hobby farm loan rates, allowing you to pursue your passion and explore a number of different opportunities with your hobby.

How We Build Our Hobby Farm Loans

Because hobby farm mortgages don’t meet the conventional requirements for lenders, many companies are unable to finance this type of property. That’s not the case with United Ag Lending. We build customized loan plans for each of our farmers based on their specific needs, budget, and goals, helping you to buy your hobby farm and get started

Flexible Solutions

We’ve made it our mission to meet our farmers, including hobby farmers, where they are. There’s no cookie-cutter loan for hobby farming. Whether you’re starting a small vegetable farm or raising chickens for eggs, the farm reflects your personal interests, and your loan solutions should too.

Accessible Requirements

If you finance with United Ag Lending, there won’t be any surprise requirements that stand in your way. We have clear, simple guidelines for our loan programs that make it easy to determine which program is right for you.

These are our basic requirements for a hobby farm loan:

  • Property is agricultural in nature
  • 5 acreage minimum, up to 160 acres
  • 680 minimum credit score
  • It has a home on it which serves as your primary residence or second home  

If your property fits these criteria, we want to hear about your hobby farm goals and discuss how we can be of service to you. You can start the process by getting in touch with us today.

Good Benefits

Our hobby farm loan rates are designed flexibly to support farmers in any way we can. Whether it’s through growing crops or owning and working with livestock, our hobby farm financing program can be your helping hand. 

Here are a few things you can do with our program that you may not have options for with other lenders:

  • Multiple homes/structures are allowed on the property
  • You can combine properties into one loan
  • Land value can exceed 30% of appraised value 
  • Schedule F income allowed 
  • Dwelling value only required to be 25% of value (lower allowed on a case-by-case basis)

What qualifies as a hobby farm?

A hobby farm differs from a commercial farm because a hobby farm isn’t financially motivated. That doesn’t mean you can’t make any money from your hobby farm, but it’s not meant to be your sole source of income.

Hobby farms are also generally smaller than commercial farms and have a residence on the property that you plan to live in at least part of the time.

These are some of the types of hobby farms we’ve financed:

  • Bee farms
  • Berry farms 
  • Chicken farms 
  • Vineyard farms
  • Equestrian farms

Hobby farming can encompass more than one type of hobby too. It’s possible to combine many types of farming on your hobby property. If your type of farm isn’t on this list, it doesn’t mean we don’t have a program for you. 

Steps to Getting Your Ideal Hobby Farm Loan Rate

The best way to get started with hobby farming is to narrow down what you are interested in exploring and devoting your farm to. This can be an ongoing process, but you should at least have an idea and some plans for your hobby farm. 

Make sure you do your research. You want to be prepared for the responsibilities that come with your farming hobby. When you visit us for a loan, our ag loan experts will want to know you’re serious about your hobby farm and that it isn’t just a fleeting dream. Have a plan and realistic expectations before you take out a hobby farming loan.

The process of hobby farm financing with the ag professionals at United Ag Lending consists of 3 main steps: the Consultation, Recommendations and Application, and a Continued Resource. 

  1. Consultation

After you’ve done your research, the first step to securing your hobby farm loan is meeting with one of our experts for a consultation. During this conversation, we work together to determine if United Ag is the right fit for your lending needs.

As long as you meet our basic hobby farm requirements, we aren’t picky about the way you use your hobby farm. Nonetheless, we will ask you these questions: 

  • What do you want your hobby farm to focus on?
  • Are you wanting to make any income?
  • What loan amount will you need?
  • How do you plan to use the funds from your loan?
  • What do you project your hobby farm to be like in a year or two?
  • Will you live on your farm full time or part time?

Be prepared to answer these questions and chat about the answers. We’ll also discuss your financial qualifications as we build out your customized loan program. We like to get to know our clients to provide the best hobby farm loan rates.

Keep in mind that we provide financing for folks who are ready to purchase their land. We’re always happy to give pointers to those who aren’t quite ready for this step, but our financial expertise lies within end financing. 

  1. Organize Your Finances

Once we’ve finalized your loan program, you’ll have the chance to review it and ask any questions before filling out your application. Our loan officers will equip you with everything you need to know before you start filling out paperwork.

When it’s time to apply for your loan, there are several documents and records you’ll need:

  • 2 to 3 years of tax returns
  • Bank statements
  • Asset information (stocks, retirement account, etc.)
  • Pay stubs
  • Driver’s license or government ID

Have these documents on hand when you’re ready to apply. It will make the process go more smoothly.

  1. Stay in Touch With Us

Even after you’ve gotten your loan and are living your hobby farm dream, we’re here to help and answer any questions you may have along the way. We value being a long-term resource for our farmers. 

If you’re ready to partner with an agriculture lending company that works on your behalf, give us a call, and we’ll be glad to start the process with you!

Why should you finance your hobby farm with United Ag Lending?

Agricultural Expertise

Financing is different for agricultural borrowers compared to traditional home mortgages. It’s better to work with financing providers who have personal experience with farming and agriculture.

Flexible Programs

One-size-fits-all financing isn’t suitable for the agricultural industry. Not all hobby farms are the same; your land and home will look vastly different than your neighbor’s. Our programs are flexible to accommodate different hobby farmers.

A Variety of Loan Program Options

We get to know each of our farmers so we can personalize a rate for their lifestyle and financial situation. More than that, we offer lower down payments than many of our competitors. 

Customizable Terms

We also offer loan terms of 15 and 30 years. You can pay your loans off as quickly or slow-paced as you need; we do not penalize you for early payoff.

Reach Out to Learn More About Our Hobby Farm Loan Rates

You have dreams for your hobby farm, and we want them to become a reality. Our hobby farm loans are a key to your hobby farm’s success, giving you the flexibility and freedom to manage your new pursuit in the way you’d like.

We’ve seen berry farming, beekeeping, chickens, and dozens more. Plus, you don’t necessarily have to pick just one thing to keep on your hobby farm; it’s for fun after all. 

Investing in your property should be an easy process, and this is what we offer every customer who works with us. With a simplified financing process, your new property doesn’t remain a daydream.

Schedule a consultation to get in touch with one of our loan officers and to start the process.

You can also get started online with our loan planning tool!

Plan Your Loan

States we serve for hobby farming:

Arizona, Arkansas, California, Colorado, Florida, Georgia, Idaho, Indiana, Iowa, Kansas, Kentucky, Maryland, Massachusetts, Michigan, Mississippi, Missouri, Montana, New Jersey, New Mexico, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Washington, Wyoming.