The Farm Service Agency has a youth loan program to establish and operate income-producing projects of modest size in connection with their participation in 4-H clubs, FFA, and similar organizations.
Each project must be part of an organized and supervised program of work. The project must be planned and operated with the help of the organization adviser, produce sufficient income to repay the loan, and provide the youth with practical business and educational experience.
Each year, many young entrepreneurs take advantage of these loans and gain valuable business experience in the process.
To qualify for a loan, an applicant must: be a citizen of the United States; be between 10 and 20; live in a town of less than 10,000 people; be unable to obtain a loan from other sources; and conduct a modest income-producing project in a supervised program of work.
Applicants must also be capable of planning, managing, and operating the project under guidance and assistance from a project adviser. The project adviser must recommend the project and the loan, and agree to provide adequate supervision.
The maximum amount for FSA youth loans is $5,000. These loans may be used to finance nearly any kind of income-producing project. Some common projects include livestock and crop production, lawn and garden services, repair shops, and roadside stands.
Loan recipients may use the money to buy livestock, equipment, and supplies; buy, rent, or repair needed tools and equipment; and pay operating expenses for running the project. Only projects of modest size can be financed.
Applicants must sign a promissory note and be responsible for repaying the loan. In some cases, a cosigner may be required. Loan collateral normally consists of crops produced for sale, livestock, equipment, and other items purchased with loan funds.
The repayment schedule will be worked out with FSA. Payments will be tailored to the type of project for which the loan was made. For example, if the loan is to raise livestock or crops, it would normally be paid when the produce/livestock is sold. If the project is a repair shop or some other service operation, the loan can be paid from the weekly or monthly earnings.
Please contact your local FSA office for additional information on the Youth Loan Program.
An important deadline for 2008 crop year wool, mohair and unshorn pelt producers has been announced: A beneficial interest exception for 2008 crop wool, mohair, and unshorn pelt producers who lost beneficial interest in the 2008 crop before June 5, 2008, has been granted.
The beneficial interest exception will expire July 11, 2008.
Contact your local FSA office if you are a wool, mohair or unshorn pelt producer for additional information.
That’s all for now,