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Fact Sheets

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October 2012

 
ARCHIVED

 
Farm Loan Information Chart

 
Overview
The following chart summarizes FSA farm loan information, effective Oct. 1, 2012. Additional details are available at local FSA offices and on FSA’s website: www.fsa.usda.gov.

 
Program
Maximum Loan Amount
Rates and Terms
Use of Proceeds
Direct Farm
Ownership (FO)
$300,000
-Rate based on Agency borrowing costs
- Interest rate 5.0% or less if at least 50% of loan amount provided by other lender
- Term up to 40 years
- Purchase farm
- Construct buildings or other capital improvements
- Soil and water conservation
- Pay closing costs
Direct Downpayment
Farm Ownership Program
- The lesser of:
45% of the purchase price,
- 45% of the appraised value,
- $225,000
- Rate is direct FO rate less 4% with a floor of 1.5%
- Term of 20 years
- Down payment of at least 5%
- Purchase of farm by a beginning or socially disadvantaged farmer
Direct Operating
(OL)
$300,000
- Rate based on Agency borrowing cost
- Term from 1 to 7 years
-Purchase livestock, poultry, equipment, feed, seed, farm chemicals and supplies
-Soil and water conservation
-Refinance debts with certain limitations
Direct Emergency
100% actual or physical losses
$500,000 maximum program indebtedness
-Rate is based on the OL rate plus 1%
-Term from 1 to 7 years for non-real estate purposes
-Term up to 40 years for physical losses on real estate
-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
-Refinance debts with certain limitations
Guaranteed
Operating
$1,302,000
(Amount adjusted annually
for inflation)
-Rate determined by the lender
-Interest rate reduction of 4% available for those unable to repay at regular rates (with certain limitations)
-Term from 1 to 7 years
-Loan guarantee fee is 1.5%
Same as direct OL
Guaranteed Farm
Ownership
$1,302,000
(Amount adjusted annually
for inflation)
-Rate determined by the lender
-Term up to 40 years
-Loan guarantee fee is 1.5%
Same as direct FO except loan may be used to refinance debts
Guaranteed Conservation Loan (CL)
$1,302,000
(Amount adjusted annually
for inflation)
-Rate determined by the lender
-Term not to exceed 30 years, or shorter period, based on the life of the security
-Loan guarantee fee is 1.5%
Eligibility requirements expanded to include large and financially strong operations
-Implement any conservation practice in an NRCS approved conservation plan
-May be used to refinance debts related to implementing an NRCS approved conservation plan
Land Contract (LC) Guarantee
The purchase price of the farm cannot exceed the lesser of:
-$500,000
-The current market value of property
-Rate cannot exceed the direct FO interest rate plus 3%
-Amortized over a minimum of 20 years with no balloon payments during the first 10 years of loan
-Down payment of at least 5%
-Sell real estate through a land contract to a beginning or socially disadvantaged farmer
- Guarantee is with the seller of the real estate

 

 
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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