4 minute read
A First Big Step with a Little Help
TAKING THEIR First Big Step WITH A LITTLE HELP Story and photos by Nancy L. Smith
“Without Farm Credit and MARBIDCO, none of this would have been possible,” says Alex Moore of Queenstown, Maryland, reflecting on his purchase of a 173 acre farm in Barclay, Maryland and his plan to build three chicken houses on the property.
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Alex, 27, and his wife Brooke, 25, can own and operate their own farm at a young age thanks to the close partnership between Farm Credit and the Next Generation Farmland Acquisition Program operated by the Maryland Agricultural and Resource-Based Industry Development Corporation (MARBIDCO). MARBIDCO is a quasi-public economic development organization chartered by the State of Maryland. The Next Generation program is designed to preserve farm and forest land for future generations. Its $2.5 million annual appropriation helps qualified young or beginning farmers who have trouble entering agriculture because of high farmland costs and lack of access to adequate financial capital. Allison Roe, MARBIDCO financial program specialist, explains how the program works: “We buy an option-purchase contract that buys the borrower time to try and sell that permanent easement.
“When [the borrower] goes to sell the permanent easement, we are repaid. We terminate our contract and then that permanent easement is placed. We get repaid and [the borrower] keeps the difference.” As part of the application process, the borrower meets with the county agricultural land preservation administrator before the land is purchased. The county official completes part of the application certifying the eligibility of the land for a permanent easement.
Samantha Steele, The Moore’s loan officer at Farm Credit, says, “In most cases, MARBIDCO will help provide the down payment amount for 100 percent financing. The Moores, through MARBIDCO, were able to sell a 99 year development easement on the new farm. “It allows them to have the funds for a down payment and helps bring the payments down and make it more affordable to start on your own,” Samantha explains.
The Moores feel they have been preparing for this next step for their entire lives. Brooke, who has worked with her father, Ralph Whaley, on the family farm in Queenstown, Maryland since she was 12, is on track to earn a business degree from Chesapeake College.
Alex started helping from a young age on a farm originally owned by his grandfather in Cordova, Maryland. The poultry and grain farm includes six poultry houses. He studied agricultural equipment maintenance at the University of Northwestern Ohio.
They will build three chicken houses on their new farm and grow organic, free-range birds for Coleman. The chicken houses are still on the drawing board, but the permits are in hand. The couple hopes to have their first flock in place by late fall 2020. “The chickens won’t be organic for three years. We will have non-organic birds until that part of the farm is considered organic,” Brooke says.
The MARBIDCO process is detailed. The application alone runs to more than 40 pages. “It was definitely a long process,” says Brooke, “longer than we expected. But they were easy to work with, and Farm Credit was there from start to finish to help the process go smoothly.” Samantha agrees it is a lot of paperwork, but she has some advice for future applicants. “Be prepared. Know what you want. Be cooperative and patient. Do your research. Know your numbers.” She says Farm Credit shares much of the information collected from the borrower, so the applicant does not have to complete duplicate paperwork. Because the process can be lengthy, borrowers need a seller who is not in a hurry to sell their farmland and who is willing to wait until all program requirements have been met. “We were fortunate to be able to wait [to close the sale] until the funding came through,” says Alex. “They were in no rush to go to settlement which was very helpful,” agreed Brooke. The future is bright for this young couple. Alex says his plan for the future is to “buy more land, till more land.” Brook explains, “We’re using chickens as a way to grow. It’s something we want to pass on to our children.”
Brooke and Alex are committed to making a success of the Barclay, Maryland farm they are buying with the help of Farm Credit and MARBIDCO’s NextGen program. The NextGen program, which just began in fiscal year 2018, is open to anyone who wants to farm in Maryland. Applications are accepted monthly and are ranked against other applicants based on a points process outlined in the application. For more information, visit marbidco.org.
