FSA offers direct farm ownership and direct farm operating loans (including Microloans) to producers who want to establish, maintain or strengthen their farm or ranch. FSA loan officers process, approve and service direct loans.
Direct farm operating loans can be used to purchase livestock and feed, farm equipment, fuel, farm chemicals, insurance and cover other costs including family living expenses. Operating loans can also be used to finance minor improvements or repairs to buildings and to refinance some farm-related debts, excluding real estate. Microloans are loans up to $50,000 for beginning, small and mid-sized farmers. They have a simplified application process and can have a repayment of up to 7 years. Microloans are part of USDA’s continued commitment to small and midsized farming operations.
Direct farm ownership loans can be used to purchase farmland, enlarge an existing farm, construct and repair buildings, and to make farm improvements.
The maximum loan amount for both direct farm ownership and operating loans is $300,000. A down payment is not required. Repayment terms vary depending on the type of loan, collateral and the producer's ability to repay the loan. Operating loans are normally repaid within seven years and farm ownership loans are not to exceed 40 years. The October interest rate for direct operating loans is 2.625% and for direct ownership loans it is 3.75%.
Please contact your local FSA office for more information or to apply for a direct farm ownership or operating loan.
Guaranteed Loan Program
FSA guaranteed loans allow lenders to provide agricultural credit to farmers who do not meet the lender's normal underwriting criteria. Farmers apply for a guaranteed loan through a lender, and the lender arranges for the guarantee. FSA can guarantee up to 95 percent of the loss of principal and interest on a loan. Guaranteed loans can be used for both farm ownership and operating purposes.
Guaranteed farm ownership loans can be used to purchase farmland, construct or repair buildings, develop farmland to promote soil and water conservation or to refinance debt.
Guaranteed operating loans can be used to purchase livestock, farm equipment, feed, seed, fuel, farm chemicals, insurance and other operating expenses.
FSA can guarantee farm ownership and operating loans up to $1,392,000. Repayment terms vary depending on the type of loan, collateral and the producer's ability to repay the loan. Operating loans are normally repaid within seven years and farm ownership loans are not to exceed 40 years.
Please contact your lender or local FSA farm loan office for more information on guaranteed loans.
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