South Carolina H 3183: Young Farmer Loan Program

Bill Text

2025-2026 Bill 3183 Text of Previous Version (Dec. 06, 2024) - South Carolina Legislature Online 

South Carolina General Assembly
126th Session, 2025-2026

Bill 3183

Indicates Matter Stricken
Indicates New Matter

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A bill

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY ADDING SECTION 
48-59-160 SO AS TO ESTABLISH THE "YOUNG FARMER LOAN PROGRAM" UNDER THE SOUTH 
CAROLINA CONSERVATION BANK ACT; AND BY AMENDING SECTION 48-59-50, RELATING TO 
BANK POWERS AND DUTIES OF THE SOUTH CAROLINA CONSERVATION BANK, SO AS TO 
PROVIDE THE BANK SHALL ADMINISTER THE "YOUNG FARMER LOAN PROGRAM."

Be it enacted by the 
General Assembly of the State of South Carolina:

SECTION 1. Chapter 59, Title 48 of the S.C. Code is amended by 
adding:

 Section 
48-59-160. (A) Notwithstanding any 
other provision of this chapter or law to the contrary, the South Carolina 
Conservation Bank shall establish, operate, and administer the "Young Farmer 
Loan Program" pursuant to the provisions contained in this section.

 (B) 
To be eligible for a loan, a person must submit a loan application to the 
Department of Agriculture. At the time of submitting the loan application the 
person must:

 (1) 
be at least eighteen years of age and no older than forty years of age;

 (2) 
have at least three years of farming or agriculturally related activity 
experience;

 (3) 
have a net worth of no more than $300,000;

 (4) 
be required to take title to the farmland in an individual name;

 (5) 
have farmland subject to the purchase that contains at least fifteen tillable 
acres;

 (6) 
not own or have an ownership interest in more than twice the tillable acres of 
farmland than the amount of tillable acres subject to purchases with loan 
monies;

 (7) 
purchase farmland located in this State;

 (8) 
be a resident of this State;

 (9) 
purchase farmland that may be comprised of a combination of tillable acres, 
forestlands, or wetlands; provided, however, that the farmland property is 
zoned for agricultural usage;

 (10) 
purchase farmland that is not subject to an existing preservation easement, 
conservation easement, or similar limitation which restricts residential or 
commercial development; and

 (11) 
contractually commit that he will be actively engaged in agricultural usage of 
the purchased farmland during the term of the loan.

 (C) 
The Department of Agriculture shall transfer all loan applications it receives 
to the bank for review and approval.

 (1) 
The bank shall adopt a loan application form requesting information from the 
loan applicant which includes, but is not limited to, information regarding 
loan eligibility.

 (2) 
The following requirements and conditions shall apply to loans provided by the 
bank:

 (a) 
the maximum total amount of loans provided to an individual recipient shall not 
exceed $500,000;

 (b) 
the maximum loan amount for any loan shall not exceed seventy percent of the 
appraised easement value of the farmland property which is being purchased and 
subject to perpetual preservation easement;

 (c) 
a condition of the loan is that the eligible farmland being acquired is to be 
subjected at closing to a permanent preservation easement in the form 
determined by the bank, the easement to have priority status and not be subject 
to subordination; and

 (d) 
the loans provided by the bank shall be secured by Notes and Mortgages which 
allows for the following conditions:

 (i) 
the Notes and Mortgages will be subordinated to other loans provided for the 
purchase, in whole or in part, of the eligible farmlands; provided, however, 
that the perpetual preservation easement placed on the eligible farmland 
property at the time of settlement shall not be subordinated;

 (ii) the Notes and Mortgages shall 
bear no interest and the payback may be structured for final payback within 
thirty years, with initial payments to begin after the primary commercial or 
other financing for the purchase of the farmland property is satisfied or 
released; and

 (iii) the Notes and Mortgages shall 
contain a requirement for payment in full of the balance of the loan upon the 
sale or transfer of the secured farmland property; provided, however, the bank 
shall have the discretion to allow for assumption of the loan by the transferee 
under such terms and conditions deemed advisable, provided the transferee 
satisfies the loan eligibility requirements set forth in this subsection.

 (3) 
Loans shall be limited to the purchase of farmland and farmland improvements 
only. Portions of the property subject to purchase which are used or proposed 
for use for residential purposes shall not be eligible for loans.

 (4) 
The approval of loans by the bank under this subsection is purely a 
discretionary function and the bank shall be under no obligation to provide a 
loan to any applicant.

 (D) 
The preservation easements provided as a condition fo