The Farm Service Agency reminds interested applicants that the agency offers loans for farmers to purchase farmland and finance agricultural operations.
Farm Service Agency loan programs are designed to help producers who are temporarily unable to obtain private or commercial credit. In many cases, applicants are beginning farmers who have insufficient net worth to qualify for financing through a commercial lender.
In other instances, applicants might have suffered setbacks from natural disasters or might be persons with limited resources.
Farm Service Agency makes two different types of loans: direct and guaranteed. Farm ownership loans or farm operating loans may be obtained as direct loans for a maximum of up to $200,000. Guaranteed loans (loans made by a commercial lender where Farm Service Agency acts as guarantor) can reach a maximum indebtedness of $949,000.
Emergency loans are a type of direct loan for farmers who may have suffered physical or production losses in disaster areas designated by a presidential or secretarial disaster declaration.
Rural Youth Loans, Loans to Beginning Farmers and loans for Socially Disadvantaged Applicants are other types of direct loans also available through Farm Service Agency. Socially Disadvantaged Applicants are one of a group whose members have been subjected to racial, ethnic or gender prejudice because of their identity as a member of the group without regard to their individual qualities.
Socially Disadvantaged Applicants groups are women, African Americans, American Indians, Alaskan Natives, Hispanics, Asian Americans and Pacific Islanders.
For detailed information on loan eligibility or the different loan programs available, contact your local Farm Service Agency office to setup an appointment with a loan approval official.
That’s all for now,