Have you inherited land without a clear title or documented legal ownership? The Heirs’ Property Relending Program (HPRP) can help you resolve heirs’ land ownership and succession issues on agricultural land.

Heirs’ property issues have long been a barrier for many producers and landowners to access USDA programs and services, and this relending program provides access to capital to help producers find a resolution. The program’s benefits go far beyond its participants. It will also keep farmland in farming, protect family farm legacies and support economic viability.

What Is Heirs’ Property?

Heirs’ property is a legal term that refers to family land inherited without a will or legal documentation of ownership. It has historically been challenging for heirs to benefit from USDA programs because of the belief that they cannot get a farm number without proof of ownership or control of land. Learn more on farmers.gov/heirs.

How the Program Works

This program works differently than other USDA programs. Rather than USDA providing the loan directly to producers, the loan will be provided to intermediary lenders, who then relend the funds to producers like you.

Here are additional details:

Intermediary lenders – cooperatives, credit unions, and nonprofit organizations – can apply for loans up to $5 million at 1% interest once the Farm Service Agency (FSA) opens the two-month signup window in late August.
Farm Service Agency (FSA) selects and announces lenders.
Heirs can apply -- for up to $600,000 -- directly to lenders for loans and assistance.
Heirs and lenders will need to repay the loan as directed by the 2018 Farm Bill.

Eligible Lenders

Intermediary lenders must:

be certified as a community development financial institution, and
have experience and capability in making and servicing agricultural and commercial loans that are similar in nature.

If applications exceed the amount of available funds:

Those applicants with at least 10 years or more of experience with socially disadvantaged farmers that are located in states that have adopted a statute consisting of enactment or adoption of the Uniform Partition of Heirs Property Act (UPHPA) will receive first preference.

States include: Alabama, Arkansas, California, Connecticut, Florida, Georgia, Hawaii, Iowa, Illinois, Mississippi, Missouri, Montana, Nevada, New Mexico, New York, Rhode Island, Texas, South Carolina, and the Virgin Islands.

Additional information can be found in the HPRP Final Rule in the Federal Register.

Relending to Heirs

Intermediary lenders will make loans to heirs who:

Are individuals or legal entities with authority to incur the debt and to resolve ownership and succession of a farm owned by multiple owners;
Are a family member or heir-at-law related by blood or marriage to the previous owner of the property;
Agree to complete a succession plan.

If you’re an heir, you may use the loans to resolve title issues by financing the purchase or consolidation of property interests and financing costs associated with a succession plan.

This may also include costs of buying out fractional interests of other heirs to clear the title, which includes closing costs, appraisals, title searches, surveys, preparing documents, mediation, and legal services.

If you’re an heir, you may not use loans for any land improvement, development purpose, acquisition or repair of buildings, acquisition of personal property, payment of operating costs, payment of finders’ fees, or similar costs.