By providing access to credit, FSA’s Farm Loan Programs offer opportunities to:
|Farm Operating- Direct||2.375%|
|Farm Operating - Microloan||2.375%|
|Farm Ownership - Direct||3.500%|
|Farm Ownership - Microloan||3.500%|
|Farm Ownership - Direct, Joint Financing||2.500%|
|Farm Ownership - Down Payment||1.500%|
|Emergency Loan - Amount of Actual Loss||3.375%|
|Effective as of July 1, 2016|
This guidebook simplifies information on the types of farm loans available; how to apply for a guaranteed loan, direct loan, or land contract guarantee; what you can expect once you submit your application; and most importantly, your rights and responsibilities as an FSA customer.
Direct Operating Loans are used to purchase items such as livestock and feed; farm equipment; fuel, farm chemicals, insurance, and family living expenses; make minor improvements or repairs to buildings and fencing; and general farm operating expenses.
Microloans are operating loans designed to meet the needs of small and beginning farmers, non-traditional, specialty crop and niche type operations by easing some requirements and offering less paperwork.
Direct Farm Ownership Loans are used to purchase or enlarge a farm or ranch, construct a new or improve existing farm or ranch buildings, and for soil and water conservation and protection purposes.
Guaranteed Loans enables lenders to extend credit to family farm operators and owners who do not qualify for standard commercial loans. Farmers receive credit at reasonable terms to finance their current operations or to expand their business; financial institutions receive additional loan business and servicing fees, as well as other benefits from the program, such as protection from loss.
Youth Loans are used by young people participating in 4-H clubs, FFA , or a similar organization, to finance educational, income-producing, agriculture-related projects.
Minority and Women Farmers and Ranchers loans support the full participation of minority and women family farmers in FSA's farm loan programs by targeting a portion of its direct and guaranteed farm ownership and operating loan funds for minority and women farmers to buy and operate a farm or ranch.
Beginning Farmers and Ranchers loans provide credit opportunities to eligible family farm and ranch operators and owners who have been in business less than 10 years.
Emergency Loans help farmers and ranchers recover from production and physical losses due to drought, flooding, other natural disasters or quarantine.