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Title:

Farm Loans


Description:

Farm Loans

The U.S. Farm Service Agency (FSA) administers and manages farm commodity, credit, conservation, disaster and loan programs through a network of federal, state and county offices. The following resources describe farm loan programs provided by FSA.

State agricultural agencies and local non-profits also provide farm loans. Use our Loans and Grants Search Tool to find federal, state and local farm loan programs for which you may qualify.

Loan Programs

  • Beginning Farms and Ranchers Loans
    Direct and guaranteed loans to beginning farmers and ranchers who are unable to obtain financing from commercial credit sources.
  • The Farm Service Agency (FSA) provides direct and guaranteed loans to beginning farmers and ranchers who are unable to obtain financing from commercial credit sources. Each fiscal year, the Agency targets a portion of its direct and guaranteed farm ownership (FO) and operating loan (OL) funds to beginning farmers and ranchers.
    A beginning farmer or rancher is an individual or entity who (1) has not operated a farm or ranch for more than 10 years; (2) meets the loan eligibility requirements of the program to which he/she is applying; (3) substantially participates in the operation; and, (4) for FO loan purposes, does not own a farm greater than 30 percent of the median size farm in the county. (Note: all applicants for direct FO loans must have participated in business operation of a farm for at least 3 years.) If the applicant is an entity, all members must be related by blood or marriage, and all stockholders in a corporation must be eligible beginning farmers

  • Commodity Loans / Marketing Assistance Loans
    Marketing assistance loans provide producers interim financing at harvest time to meet cash flow needs without having to sell their commodities when market prices are typically at harvest-time lows
  • Non-Recourse Marketing Assistance Loan
    Marketing assistance loans provide producers interim financing at harvest time to meet cash flow needs without having to sell their commodities when market prices are typically at harvest-time lows. Allowing producers to store production at harvest facilitates more orderly marketing of commodities throughout the year.
    Marketing assistance loans for covered commodities are non-recourse because the commodity is pledged as loan collateral and producers have the option of delivering the pledged collateral to the Commodity Credit Corporation (CCC) in satisfaction of the repayment of the outstanding loan for the loan at maturity. A settlement value is determined and applied to the outstanding loan principal and interest.
    Market loan repayment provisions specify, under certain circumstances, that producers may repay loans at less than principal plus accrued interest and other charges. Alternatively, loan deficiency payment (LDP) provisions specify that, in lieu of securing a loan, producers may be eligible for an LDP. For ELS cotton, LDP provisions do not apply and ELS cotton marketing assistance loans must be repaid at the loan rate plus interest.

    Recourse Marketing Assistance Loan
    Recourse loans must be repaid at principal plus interest. The recourse loan commodity cannot be delivered or forfeited in satisfaction of the outstanding loan.

    Marketing Assistance Loan and LDP Eligibility
    For a commodity to be eligible for a marketing assistance loan or a loan deficiency payment (LDP), the producer must have beneficial interest in the commodity in addition to other eligibility requirements.

  • Direct Farm Loans
    Loan programs for starting and operating farms and other agricultural businesses.
  • "Direct" farm loans are made by FSA with Government funds. We also service these loans and provide our Direct loan customers with supervision and credit counseling so they have a better chance for success. Farm Ownership, Operating, Emergency and Youth loans are the main types of loans available under the Direct program. Direct loan funds are also set aside each year for loans to minority applicants and beginning farmers

  • Emergency Farm Loans
    Emergency loans to help producers recover from production and physical losses due to drought, flooding, other natural disasters, or quarantine.
  • USDA's Farm Service Agency (FSA) provides emergency loans to help producers recover from production and physical losses due to drought, flooding, other natural disasters, or quarantine.

    Loan Uses
    Emergency loan funds may be used to:
    • Restore or replace essential property;
    • Pay all or part of production costs associated with the disaster year;
    • Pay essential ...
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