Land, Leverage & Longevity: A New Playbook for Young Farmers

There’s a question I get more often than any other when talking with young or beginning farmers: “Is this the right time to make a big move – especially with land?”

It’s a fair question, and not one with a universal answer. But what I can say with confidence is this: the way you plan matters more than the timing. And that’s never been truer than it is right now.

The New Realities of Starting Out

If you’re a young or beginning farmer in 2025, you already know the numbers are different than they were just a few years ago. Land values remain elevated in most regions. Input costs are still volatile. Interest rates have steadied, but they're no longer record lows.

Rethinking What “Owning Land” Really Means

The pressure to own farmland is real. But ownership doesn’t have to come all at once – and it doesn’t define your legitimacy as a farmer. What matters is having a plan that reflects your cash flow, your management ability and your long-term goals.

You don’t want to stretch so far for ownership that it jeopardizes your operating capital. And you don’t want to wait so long that opportunities pass by. It’s about balancing vision with discipline – and using the tools that exist to help you do that.

Planning Isn’t Optional. It’s Strategic.

After working with many new farmers in my career, I’ve noticed the ones who succeed early aren’t always the ones who move fastest – they’re the ones who plan smartest.

Planning doesn’t just mean spreadsheets and loan apps. It means asking hard questions:

• How much leverage can my operation handle in a bad year?
• Am I building equity – or just accumulating debt?
• Can I pivot if land prices drop or my cash flow tightens?

These questions aren’t meant to scare you – they’re meant to ground you. And the good news is, you don’t have to answer them alone.

The Tools You Might Not Know You Have

At Compeer Financial, we’ve built an entire toolbox for young and beginning farmers – a collection of resources, loan programs and advisory support specifically designed to help farmers like you not just get started, but get established.

One of the newest tools we’ve added is the Farm Forward: Loan Down Payment program, which gives eligible farmers the chance to buy land with as little as 1% down and reduced interest rates for the first five years – even if you’ve maxed out FSA programs or don’t quite fit the mold of a “traditional borrower.”

It’s not just a loan. It’s a door that opens – when the timing is right for you.

We also offer Starter Loans, which offer relaxed underwriting standards and reduced fees to young and beginning farmers.

Start Where You Are, Build Toward Where You Want to Be

If there’s one takeaway from the last few years, it’s that the market doesn’t wait for the “perfect time.” But the right preparation can make your time the right time.

Whether your next step is building working capital, expanding an operation or just buying your first 40 acres – you don’t have to go it alone.

Compeer is here for you with the tools, insights and support to achieve your goals.

Explore the full young and beginning farmers toolkit, and let’s talk about where you want to go from here.