FSA Andy: loans

Hello again!

Well, the combine is in the back shed and it’s time to work on the farm finances. I know we all love to pay the bills and make our projections for the upcoming year.

If you are considering purchasing some land or can advise a young farmer on their finances, the following may be of interest : FSA 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 have limited resources.

Loan types

FSA 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 $300,000. Guaranteed loans (loans made by a commercial lender where FSA acts as guarantor) can reach a maximum indebtedness of $1,302,000.

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 FSA.

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. SDA groups are women, African Americans, American Indians, Alaskan Natives, Hispanics, Asian Americans and Pacific Islanders.

Certain FSA loan funds are targeted to beginning farmers and SDA.

That’s all for now,

FSA Andy

About the Author

FSA Andy is written by USDA Farm Service Agency county executive directors in northeastern Ohio. More Stories by FSA Andy

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