The Farm Service Agency (FSA) has a loan program to assist rural youth to establish and operate income producing agriculture projects.
In the last five years the New Philadelphia Farm Loan team has made 153 youth loans for a total of $463,980. In fiscal year 2013 we made 28 youth loans for a total of $71,650 for an average loan of $2,559.
As of Sept. 30, 2013 the New Philadelphia farm loan office had 85 youth loan borrowers with 98 loans. We have one youth loan borrower who recently received his eighth annual operating loan.
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 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 cosign 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. Annual operating loans are due when the crops or feeder livestock are sold. Loans for equipment or breeding livestock can have a term of up to 7 years and the loan can have an annual payment.
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.
In New Philadelphia the majority of our youth loans are for breeding livestock. We have loans for beef cows, dairy cows, goats, small equipment, farm equipment, small buildings for livestock projects, and for annual livestock projects.
Additional information on Farm Service Agency rural youth loans can be obtained by contacting your local Farm Service Agency county office or the FSA website at http://www.fsa.usda.gov and clicking on farm loans.