Ask FSA Andy about farm loans for youth

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Hello Again!

The Farm Service Agency has a loan program to assist youth to establish and operate income producing agriculture projects.

A youth loan applicant must be between 10 and 20 years of age; participating in 4-H or FFA or a similar organization; and must have a modest, income-producing, agricultural project.

The project advisor or mentor and the parents must provide a written recommendation for the project.

Depending on the project and the loan security, the parents may be asked to co-sign the loan.

The maximum loan amount for a youth loan is $5,000. The interest rate is fixed at the time the loan closes.

The repayment schedule for the loan varies with the type of project for which the loan is made.

Youth loans can be used to finance many kinds of agricultural projects. The loan funds can be used to buy livestock, equipment, and supplies; buy, rent or repair needed tools and equipment; and pay operating expenses for the project.

Examples of common projects are beef cows, dairy cows, sheep or goats, grain crops, produce crops, small green houses, farm equipment, or annual livestock projects.

FFA members can use the FSA youth loan to expand or improve their SAE project.

An FSA youth loan is a good way to start a farm operation as it results in a credit history at a young age, a history of a farm operation, a history of farm experience, and equity in farm assets such as livestock or farm equipment.

We have several borrowers who started out with youth loans and have progressed to beginning farmer operating and/or real estate loans.

Additional information on Farm Service Agency youth loans can be obtained by contacting your local Farm Service Agency county office or the FSA website at www.fsa.usda.gov and clicking on farm loans.

That’s all for now,
FSA Andy

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