Farm Loan Program Changes

Changes to FSA regulations have resulted in changes to both the Direct and Guaranteed Loans available through FSA.  The new regulations have removed Guaranteed Operating term limits.  Previous and current guaranteed loan borrowers who were not eligible for further guaranteed loans due to the previous 15 year eligibility term limit may now be eligible for further guaranteed loans through their commercial lender.

Also, the interest rate was reduced on Direct Loans where FSA provides 50 percent or less on jointly financed purchases of real estate also called Direct Farm Ownership Participation Loans.  The interest rate is currently 2.5%, but is subject to change.

FSA Helps Beginning Farmers

If you're a new farmer or someone looking to get into the farming business the FSA has a loan program for beginning farmers to help get them started.  The FSA can provide financing to eligible applicants through either direct or guaranteed loans.  So what makes an applicant eligible?

FSA Beginning Farmer Loan Qualifications

• Has operated a farm not longer than ten years. 
• Will materially and substantially participate in the operation of the farm.
• Agrees to participate in a loan assessment, borrower training and financial management program sponsored by the FSA.
• Does not own a farm in excess of 30 percent of the county's median size.

To learn more just go to your local USDA office or go to FSA.gov to learn more.