How do I get a loan for buying agriculture land or what are the alternative ways to get a loan so that I can buy an agriculture land?
Information about Punjab National Bank Agriculture Land Loan scheme offer to farmers, so that you can have idea about it.TIME SCHEDULE FOR DISPOSAL OF LOAN APPLICATIONS:1 Upto Rs.2 lakh 2 weeks2 Above Rs. 2 lakh & upto Rs. 50 lakh 4 weeks3 Above Rs. 50 lakh & upto Rs. 100 lakh 5-6 weeks4 Above Rs. 100 lakh & upto Rs. 100 crores 6-7 weeks5 Above Rs. 100 crores 8-9 weeks2.MARGIN NORMS:Amount of Loan Margin 1 Upto Rs.1,00,000/- (both for short term and medium term) Nil2 Above Rs.1,00,000/- to Rs.2 lakh 5%3 Above Rs.2 lakh to Rs.5 lakh 10%4 Above Rs.5 lakh 25%Security for the loanProduction Credit/Investment Credit:(i) Upto Rs.1, 00,000/-Hypothecation of crops/assets created out of bank loan;(ii) Above Rs.1, 00,000/-(a) Hypothecation of crops/assets created out of bank loan;AND(b) Charge on land as per Agricultural Credit Operations and Miscellaneous (Provisions) Act of the State concerned/Mortgage of agricultural land valued at 100% of amount of loan for other farmers and 75% of the loan amount for small farmers/marginal farmerORAlternate security, viz., charge/lien over liquid securities such as term deposits/NSCs/KVPs, etc.,which may be considered adequateORSuitable third party guarantee.(a) Under the Scheme of Agri-Clinics and Agri-Business Centres:(i) Upto Rs.5 lakh:Hypothecation of assets created out of bank loan;(ii) Above Rs.5 lakh:(a) Hypothecation of assets created out of bank loan;AND(b) Charge on land as per Agricultural Credit Operations and Miscellaneous (Provisions) Act of the State concerned/ Mortgage/Equitable Mortgage of agricultural land/any other suitable property valued at 150% of amount of loan for other farmers and 100% of the loan amount for small farmers/marginal farmers;ORAlternate security, viz., charge/lien over liquid securities such as term deposits/NSCs/KVPs, etc., which may be considered adequate.ORSuitable third party guarantee.
Pros and cons of land banking of forest land to agricultural land?
Not easy at all. If you're buying forest land, you're buying land + timber + mineral rights(hopefully). You can expect to pay full value and a premium on top right now if you're buying timberland outright. People who are buying that kind of land should be in it for the long-term...and by long-term I mean 30 years+. The reason is because as timber grows, the timber companies and mills will pay higher prices for timber that shifts from premercantable (too small for harvest) to merchantable (ready for harvest). Then, you also have to factor for the costs to do thinning every couple of years to make sure your trees keep growing. And then there's added costs to prep the land for planting, having surveys done, transportation, costs for timber companies to harvest, etc etc etc. That's just the timber land. If you're converting it to farmland, that might not be such a good idea given the soil rating for trees might not equate to crops, but that's to be determined. you need to have all of these bullet points justified: 1) There's demand for the farmland above your cost per acre + a built-in gain 2) The survey of land agrees that crops could be sustained on the land 3) Financing/debt covenants allow for you to do this. (Alot of the times I've come across this, the debt covenants are very strict and don't allow for you to convert land because 1) it's collateralized by the timber on the land 2) it allows for the prepayment of the loan based on a certain % of the thinning per year 3) it depletes the land which is usally 90%+ the value of the land in the first place 4) Other operating lease covenants are detailed very carefully. (You want to make sure they take care of the land). I understand that it's virgin land, but you'll just have to discern whether you want to take the hit up front for taking away the future growth of the timber for 2-3 year at a time (if that) lease payments. For my money, I would not
Who can buy agricultural land in usa? can foreigners buy it?
Yes, foreigners can and do buy it. But the U.S. Department of Agriculture monitors foreign ownership of U.S. agricultural land (farm and forest lands) under the Agricultural Foreign Investment Disclosure Act of 1978. This law required all foreign owners of U.S. agricultural land to submit reports to the Secretary of Agriculture detailing the number of acres owned and associated information. Subsequent transactions must also be reported to the Secretary within 90 days of their occurrence. This provides the Department with a continuing inventory of foreign ownership of U.S. agricultural land. However, not all foreign ownership gets reported. The loophole is, many U.S. based corporations or agribusinesses own farms, crops, and land. Foreigners own stock, often majority stockholders, in the corporation.