Ask FSA Andy: There are USDA loans out there for farmers


Hello Again!

This week I would like to remind you that USDA Farm Service Agency (FSA) offers loans for farmers to purchase farmland and finance agricultural operations.

FSA loans 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.

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 $1,214,000.

Loans to beginning farmers and loans for socially disadvantaged applicants are other types of direct loans also available through FSA.

Socially disadvantaged applicants (SDA) 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.

For detailed information on loan eligibility, contact your local FSA office to setup an appointment with a loan official.

That’s all for now,

FSA Andy

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