Manhattan, Kansas - March 22, 2013 --- Adrian J. Polansky, State Executive Director of the USDA Kansas Farm Service Agency (FSA), announced that the FSA is reaching out to minority and women farmers who want to purchase or operate a family-size farm.

"Each year, FSA targets a portion of its farm loan funding for socially disadvantaged applicants (SDA)”, Polansky said. The targeted funds are available to socially disadvantaged applicants who include minority farmers, women farmers, as well as beginning farmers.

For FSA farm loan purposes, FSA defines a SDA person as one of a group whose members have been subjected to racial, ethnic, or gender prejudice because of their identity as members of a group without regard to their individual qualities. For additional information regarding FSA loans to minority or women farmers, please visit www.fsa.usda.gov/ks.

A beginning farmer or rancher is defined as someone who:

Polansky said that “while funding is targeted for loans to socially disadvantaged applicants and beginning farmers, loan approval is neither automatic nor guaranteed.” Polansky stated that “in Fiscal Year 2012, Kansas obligated $9,054,264 for a total of 136 loans to qualified farmers under the Socially Disadvantaged Persons Loan Program. We also obligated $52,009,683 for a total of 568 loans to qualified farmers under the Beginning Farmer Program.”

"Applicants seeking credit through FSA must meet certain eligibility criteria,” Polansky said. FSA applicants must be U.S. citizens, have a satisfactory history of meeting credit obligations, have sufficient education, training or experience managing or operating a farm, possess legal capacity to incur debt; and be unable to obtain credit elsewhere.

In January, FSA announced a new program called the Microloan Program. This program was developed to better serve the unique financial operating needs of beginning, niche and the smallest of family farm operations by modifying the operating loan application, eligibility and security requirements. It offers more flexible access to credit and will serve as an attractive loan alternative for smaller farming operations like specialty crop producers. Microloans have a $35,000 limit and can be used for all purposes authorized under the FSA Operating Loan Program. Traditional operating loans, up to $300,000, may be used to purchase livestock, equipment, feed, seed or pay other business related expenses. Both Microloan and Operating loans are usually repaid in one to seven years.

Ownership loans are available to provide capital to purchase or enlarge a farm, construct or improve buildings, promote soil and water conservation and pay closing costs. Direct ownership loan terms are up to 40 years.

In addition to direct loans, FSA can provide loan guarantees to commercial lenders. Guaranteed operating and ownership loans may be made by any lending institution subject to Federal or state supervision (banks, savings and loans, and units of the Farm Credit System). FSA typically can guarantee up to 95 percent of the loan against any loss that might be incurred if the loan fails.

For additional information, contact your local Farm Service Agency at the county USDA Service Center nearest you.

USDA is an equal opportunity provider and employer. To file a complaint of discrimination, write: USDA, Office of the Assistant Secretary for Civil Rights, Office of Adjudication, 1400 Independence Ave., SW, Washington, DC 20250-9410 or call (866) 632-9992 (Toll-free Customer Service), (800) 877-8339 (Local or Federal relay), (866) 377-8642 (Relay voice users).