November 2009
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The following chart summarizes FSA farm loan information. Additional details are available at local FSA offices or on FSA's Web site: http://www.fsa.usda.gov.
Program | Maximum Loan Amount | Rates and Terms | Use of Proceeds |
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Direct Farm Ownership (FO) | $300,000 | - Up to 40 years - Rates based on Agency borrowing costs - Temporary limited resource interest rates are available for those unable to repay at regular rates - Interest rate 5% if 50% of loan amount provided by other lender | - Purchase farm - Construct buildings or other improvements - Soil and water conservation - Pay Closing Costs |
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Downpayment Program | The least of: - 45% of the purchase price, - 45% of the appraised value, or - $225,000 | - Term: 20 years - Interest rate: Direct FO rate less 4% with a floor of 1.5% - Down payment: 5% | Purchase farm |
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Direct Operating (OL) | $300,000 | - From 1 to 7 years - Rates based on Agency borrowing cost - Temporary limited resource interest rate is available for those unable to repay at regular rate | - Purchase livestock, poultry, equipment, feed, seed, farm chemicals and supplies - Soil and water conservation - Refinancing indebtedness with certain limitations |
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Direct Emergency | 100% actual or physical losses $500,000 maximum program indebtedness | - From 1 to 7 years for non-real estate purposes - Up to 40 years for physical losses on real estate - Interest rate: 3.75% | - Restore or replace essential property - Pay all or part of production costs associated with the disaster year - Pay essential family living expenses - Reorganize the farming operation - Refinancing indebtedness with certain limitations |
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Guaranteed Operating | $1,112,000 (Amount adjusted annually for inflation) | - From 1 to 7 years - Rates not to exceed the rate charged to lenders' average agricultural loan customers - Interest rate reduction of 4% available for those unable to repay at regular rates (with certain limitations) | Same as Direct OL except loan may be used to refinance debts |
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Guaranteed Farm Ownership | - Up to 40 years - Rates not to exceed the rate charged to lenders' average agricultural loan customers | Same as Direct FO except loan may be used to refinance debts |
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The U.S. Department of Agriculture (USDA) prohibits discrimination in all its programs and activities on the basis of race, color, national origin, age, disability, and where applicable, sex, marital status, familial status, parental status, religion, sexual orientation, genetic information, political beliefs, reprisal, or because all or part of an individual's income is derived from any public assistance program. (Not all prohibited bases apply to all programs.) Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact USDA's TARGET Center at (202) 720-2600 (voice and TDD). To file a complaint of Discrimination, write to USDA, Director, Office of Civil Rights, 1400 Independence Avenue, SW., Washington, DC 20250-9410, or call (800) 795-3272 (voice) or (202) 720-6382 (TDD). USDA is an equal opportunity provider and employer.
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