FSA Andy for March 26, 2009


Hello again!

The Farm Service Agency wants to remind interested applicants FSA offers loans for farmers to purchase farmland and to finance agricultural operations. 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 be persons with limited resources.

FSA makes two different types of loans, direct and guaranteed. Farm ownership loans or farm operating loans may be 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 $1,094,000. Guaranteed loans can be farm ownership loans, operating loans or line of credit operating loans.

Emergency loans are a type of direct loan for farmers who have suffered physical or production losses in disaster areas designated by a Presidential or Secretarial disaster designation.

Rural youth loans, loans for beginning farmers and loans for socially disadvantaged applicants are other types of direct loans also available through FSA.

A beginning farmer is defined as a person or persons who have operated a farm for not more than 10 years. For direct farm ownership loans a beginning farmer cannot own a farm in excess of 30 percent of the county’s median farm size prior to purchasing the new farm.

All applicants for direct farm ownership loans must have participated in the business operation of a farm for at least three years. Socially disadvantaged applicants 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 socially disadvantaged applicants. All loan applicants must meet the eligibility requirements of the program to which he or she is applying.

For detailed information on FSA farm loans contact your local Farm Service Agency county office or Farm Loan Team. Information can also be obtained from the FSA Web site at www.fsa.usda.gov and clicking on “Farm Loans.”

That’s all for now,

FSA Andy


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



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