I have a friend that has a farm in the US. He wants to get funds to the foreign country where he lives. He is thinking of taking out a loan against the farm and transferring that money to his foreign residence to use to invest there. Are there any tax consequences?

Not on the U.S. side of the equation. Money from a loan is NOT a taxable event.

Now, transferring the money may generate a transfer tax in his home country, but no taxes will be due in the United States.