USDA farm loan limits increase

corn kernels and dollar bills
(Farm and Dairy file photo)

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 or contact a USDA service center.


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