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October 2010
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, - $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 | $1,119,000 (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 | $1,119,000 (Amount adjusted annually for inflation) | - 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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Direct Conservation Loan (CL) | $300,000 | - Rate: same as Direct FO rate - Term: Chattel – 7 yrs and Real Estate – 20 years, unless the applicant requests a lesser term | - Implement any conservation practice in an NRCS- approved conservation plan |
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Guaranteed Conservation Loan (CL) | $1,119,000 (amount adjusted annually for inflation) | - Rates: determined by the Lender - Term: not to exceed 20 years, or shorter period, based on the life of the security | - Same as Direct CL, except loan may be used to refinance debts as related to implementing an NRCS-approved conservation plan |
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USDA is an equal opportunity provider, employer and lender. To file a complaint of discrimination, write to USDA, Assistant Secretary for Civil Rights, Office of the Assistant Secretary for Civil Rights, 1400 Independence Avenue, S.W., Stop 9410, Washington, DC 20250-9410, or call toll-free at (866) 632-9992 (English) or (800) 877-8339 (TDD) or (866) 377-8642 (English Federal-relay) or (800) 845-6136 (Spanish Federal-relay). USDA is an equal opportunity provider and employer.
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