WASHINGTON — The 2018 Farm Bill increased the amount that producers can borrow through USDA’s Farm Service Agency (FSA) loans.
Key changes include:
– The Direct Operating Loan limit increased from $300,000 to $400,000, and the Guaranteed Operating Loan limit increased from $1.429 million to $1.75 million.
Operating loans help producers pay for normal operating expenses, including machinery, equipment, seed and livestock feed;
– The Direct Farm Ownership Loan limit increased from $300,000 to $600,000, and the Guaranteed Farm Ownership Loan limit increased from $1.429 million to $1.75 million.
Farm ownership loans help producers become owner-operators of family farms and improve operations;
– Producers can receive both a $50,000 Farm Ownership Microloan and a $50,000 Operating Microloan. Previously, microloans were limited to a combined $50,000.
Microloans provide flexible access to credit for small, beginning, niche and nontraditional farm operations;
– Producers who previously received debt forgiveness as part of an approved FSA restructuring plan are eligible to apply for emergency loans. Previously, these producers were ineligible; and
– Beginning and socially disadvantaged producers can receive up to a 95 percent guarantee against the loss of principal and interest on a loan, up from 90 percent.
For more information, visit www.fsa.usda.gov or contact a USDA service center.
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