FSA Promotes Loans For Beginning, Underserved Farmers

The USDA’s Farm Service Agency offers both farm ownership and operating loans to underserved producers or farmers just starting out. Farm loan chief, Steven King, says loans are available for operating funds to purchase inputs and supplies to get through the crop year.

"That same type of loan can be termed out over, up to seven years, to provide financing for things like machinery and breeding livestock that have a longer lifespan than an annual operating loan would."

A real estate loan program is also available to finance the purchase or improvement of property. King added there are differing qualifications, depending on the loan for which the farmer is applying. Specifically when it's a direct USDA loan, the organization looks at a handful of things like farm management experience.

"We look for to make sure the applicant has a good credit score history, they need to be a U.S. citizen or permanent residence and have a managerial ability with on the job experience."

King adds the USDA has recognized it's a real need to bring the next generation of farmers on board so tools have been implemented to accomplish that, whether it’s a USDA loan or the USDA help back up a commercial loan through a local bank. To have your loan questions answered, contact your local FSA office.

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