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Glossary term

Farm Ownership Loan

Definition

A farm ownership loan is long-term financing used to buy, expand, or improve a farm or ranch.

Technical definition

A farm ownership loan is long-term credit secured by agricultural real estate, used to purchase farmland, make capital improvements, or refinance real-estate debt.

Why it matters

It's typically the largest financing a farm takes on, with long terms and significant collateral, so structure and comparison matter.

Example

Buying additional acreage to expand an operation might be financed with a farm ownership loan.

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