Guide
How to finance hunting land in Minnesota, Wisconsin and Iowa
Most buyers use a land loan from Farm Credit or a local lender, cash or seller financing. Fed surveys put 2026 farm real estate loan rates near 6.8%.
By Jordan Johnson, Founder, Kedron Co.Updated 7 min read
Most hunting land buyers in Minnesota, Wisconsin and Iowa finance with a land loan from a Farm Credit association, a local bank or a credit union. Others pay cash or use seller financing through a contract for deed. Plan on a sizable down payment, and on rates near what farm lenders reported in 2026: about 6.8% on farm real estate loans.
This guide explains the options, the numbers lenders have published, and what to have ready. It isn't financial advice. Your lender, accountant and attorney are the ones to answer for your situation.
How is a land loan different from a home mortgage?
A land loan is written for ground, not a house. Lenders who make them describe the property as "vacant or undeveloped property, often without water, sewer or electric services" (Compeer Financial). With no house on the parcel, the land itself is the collateral, and the lender sets the down payment and terms around it.
Published terms vary by lender. Two examples from Farm Credit associations that serve the Upper Midwest:
| Lender | What it finances | Published terms |
|---|---|---|
| Compeer Financial (MN, WI, IL) | Vacant land, recreational land for "hunting, fishing, camping, ATV or trail riding," future home sites | "10-year fixed rate or 30-year ARM/balloon options"; "up to 10 years to build or start paying down your loan" |
| Farm Credit Services of America (IA, NE, SD, WY) | Agricultural land loans; recreational land "for such uses as fishing and hunting" goes through its Rural 1st program | Fixed rates "up to 30 years," variable rates and interim-fixed rates |
If the property has a house on it, you may be looking at a rural home loan instead. Ask the lender which loan fits the parcel.
Where do buyers get land loans in MN, WI and Iowa?
- Farm Credit associations. These are cooperative lenders that specialize in rural and agricultural credit. Compeer covers 144 counties in Illinois, Minnesota and Wisconsin. AgCountry Farm Credit serves North Dakota, Minnesota and Wisconsin (AgCountry). Farm Credit Services of America serves Iowa, Nebraska, South Dakota and Wyoming (FCSAmerica).
- Local banks and credit unions. Call the banks in the county where the land is. A local lender knows the ground and the recent sales around it.
- Seller financing. The seller carries the loan, usually through a contract for deed. More on that below.
- Cash. No lender, no appraisal contingency, and often a faster close. Some buyers pay cash and borrow against other assets. That's a question for your financial advisor.
Get quotes from more than one. Terms on the same parcel can differ between lenders.
How much down payment do you need?
There is no single number. It depends on the lender, the property and your finances.
- Farm Credit Services of America says, "On new purchases, down payments of 35% are typical on many land loans," and that the amount "is specific to each credit request" (FCSAmerica).
- Compeer says "low down payment options may be available" on its land loans, and that "in some cases, gift of equity between family members can be considered" (Compeer Financial).
Ask every lender two questions up front: what down payment they'd need on this parcel, and whether that changes if the land has tillable acres, timber or a building.
What are land loan rates in 2026?
The best public read on rates comes from the Federal Reserve's quarterly surveys of agricultural lenders:
| Survey | District | Farm real estate loan rate |
|---|---|---|
| Chicago Fed AgLetter, August 2026 (second quarter of 2026, 79 lenders) | Iowa, Illinois, Indiana, Wisconsin | 6.79% |
| Minneapolis Fed Ag Credit Survey, May 2026 (first quarter of 2026) | Minnesota, northwestern Wisconsin and the rest of the Ninth District | 6.8% fixed, 6.8% variable |
These are averages for farm real estate loans, not a quote for recreational land. Your rate will depend on the lender, your credit, the down payment and the property.
Lenders are also asking for more security. The Chicago Fed's lenders reported that "the amount of collateral required by lenders across the District was higher than a year ago." In the Minneapolis Fed survey, 24 percent of banks said they increased collateral required on farm loans in the first quarter of 2026. Rates are weighing on land buyers too: in Iowa State University's 2025 Land Value Survey, interest rate hikes were the second most-cited negative factor for land values, named in 22% of responses (ISU, December 2025).
What are Farm Credit cash-back dividends?
Farm Credit associations are cooperatives owned by their borrowers. Some return part of their earnings to borrowers. Farm Credit Services of America calls these "Cash-Back Dividends" and says they are "based on eligible loan volume and Association financial results" (FCSAmerica). Ask any Farm Credit lender whether your loan would be eligible and what it paid in recent years. It lowers the real cost of the loan, but it isn't guaranteed.
How does seller financing work on land?
In a contract for deed, the seller keeps title until the buyer finishes paying, then delivers the deed. It can help when a buyer can't get a bank loan on the parcel, or when a seller wants payments over time. The rules differ by state, and the stakes are high if a buyer falls behind:
- Minnesota: a contract for deed is cancelled on 60 days' notice for contracts made after August 1, 1985, unless the buyer cures the default (Minn. Stat. 559.21, 2025). No mortgage registration tax is due when a contract for deed is recorded, and deed tax is due on the final deed (Minnesota Department of Revenue).
- Iowa: a real estate contract is forfeited "unless, within thirty days after the completed service of the notice," the buyer performs the terms in default and pays reasonable costs (Iowa Code 656.2, 2025).
- Wisconsin: land contracts are used too. Ask a Wisconsin real estate attorney how default and forfeiture work there before you sign one.
Never sign a contract for deed without your own attorney reviewing it. Have the contract recorded, and know what happens if you miss a payment.
Can you use a USDA loan for hunting land?
Generally not for recreational land. USDA Farm Service Agency farm ownership loans are built for farm operators. For direct farm ownership loans, FSA says "all applicants ... must have participated in the day-to-day management of a farm or ranch for at least 3 years" (USDA FSA). If you farm and the purchase is farmland you'll operate, ask your county FSA office.
What to have ready before you call a lender
Lenders move faster when you bring the property file with you. Ask the listing agent for:
- The legal description and parcel numbers.
- A survey, if there is one.
- How the property is accessed: road frontage or a recorded easement.
- Any program contracts that come with the land, such as CRP, Wisconsin MFL or Minnesota SFIA.
- Any farm or hunting lease, with its end date.
- The last property tax statement.
- A map showing tillable, timber and wetland acres.
If you're selling other property to buy this one through a 1031 exchange, tell the lender early and read 1031 exchanges for landowners. The deadlines don't wait for underwriting.
Get pre-qualified before you make an offer
Good hunting parcels don't always sit. Talk to a lender before you find the property, not after. A pre-qualification letter tells the seller you can close, and it tells you what you can afford before you fall for an 80 that's out of reach.
Then read the listing with a lender's eye. Our guides to what hunting land buyers look for and the questions to ask before you buy cover the property side. If you're buying in Iowa from out of state, read Iowa's nonresident deer tag rules before you run the numbers. More buyer guides are on the Land buyers page.
