Warning: session_start() [function.session-start]: open(/home/content/83/3556183/tmp/sess_q35c5j08otlb0fkb1m1l2ouc70, O_RDWR) failed: No such file or directory (2) in /home/content/83/3556183/html/index.php on line 7

Warning: session_start() [function.session-start]: Cannot send session cookie - headers already sent by (output started at /home/content/83/3556183/html/index.php:7) in /home/content/83/3556183/html/index.php on line 7

Warning: session_start() [function.session-start]: Cannot send session cache limiter - headers already sent (output started at /home/content/83/3556183/html/index.php:7) in /home/content/83/3556183/html/index.php on line 7
Farm Loans

You are here: >

 Farm Loans

Farm Loans

Farmers are an absolutely important part of the society for they contribute immensely to the well being of the society. Without farmers, food would not be available. In the country a number of farmers spend time to grow food crops and distribute them to the general population. Without their efforts, there would be very little that the community can do to have the amount of food needed. For these reasons and more, farmers are business people who are essentially indispensable and serve an important role.


However, at times, these business people face difficulties in terms of financial resources to start or to upkeep the farming property. Perhaps this may be a seasonal financial instability that may prompt a little outside help in order to get you back on your feet as a farmer. Whatever the reason, there are useful tools from the government at your disposal: farm loans. These loans are designed to provide various types of farmers with financial incentives and enabling in order for their farm business to start up or to expand.


From the United States Department of Agriculture, there are several types of loans and we shall look at them and what they entail. Furthermore, there will be recommendations to help you gain more insight on what you need to know before you apply for the particular farm loan program you are considering.


Direct Farm Operating Loans

These loans are available for farmers in establishing, maintaining, and strengthening the farm or ranch. As a farmer, you may find the cost of maintaining the ranch or the farm outside your financial threshold at times, and this is where this particular type of loan comes in handy. In terms of operations, the farm loan is able to lend you money for operational equipment, improvement projects, and other such as labor experience. However, some costs arising from labor experience expenses may be offset by having apprenticeships and non-farm business experience help.


Something you should know, these loans cannot be used to fund non-farm enterprises, so they must be used strictly for operational costs within the farm. The loan can be used to purchase various items for the farm such as farm equipment, refinancing farm related debts, insurance, purchasing livestock, livestock feed, and coverage of other operating costs. The maximum loan amount for this type of loan is $300,000 and there is no required down payment. You can visit your nearest FSA office to find out more information and get help in applying for the loan.


Emergency Farm Loans

Accidents and mishaps happen, and when they happen on a large scale, they can affect the farm or ranch on a serious scale. Sometimes the farm owner does not have necessary or enough financial capabilities to restore the farm and its equipment. In case of any sort of emergency affecting the functions of the ranch or the farm, you can apply to an emergency farm loan through FSA. They are specially designated for primary disaster area or quarantine areas and counties in these areas are eligible to apply. These loans may be used to pay for reorganization for farming operations, restoring property or replacement of property, pay for production costs within the disaster year, refinance debts (including real estate debts), and pay for family or living expenses. The maximum amount that can be loaned from the emergency farm loan is $500,000.


Farm Ownership Loans

If you are thinking about starting your own farm or ranch, these loans are worth consideration. It is designed to provide farmers and ranchers the opportunity to improve or start their own farm. The maximum amount of $300,000 can be used to construct or repair farm buildings, to make farm related improvements, and to purchase farmland. With this type of loan, there is no down payment. To be eligible, the applicant must have been participating in daily farm management for at least three years before applying. This is to ensure the loan money is going to owners and applicants with necessary skills to make good use of the loan fund.


Beginning Ranchers and Farmers Loans

These loans are designed to help upstarting farmers begin their own ranch or farm business. To qualify for the loans, the applicant must have substantial experience in farm or ranch operations, he or she must not own a ranch or farm that is 30% the average farm size in the particular county. He or she must also meet loan eligibility requirements as outlined by the loan application process.


Minority and Women Ranchers and Farmers

This loan aims to help minorities and women in the ranching and farming enterprise. It is targeted towards helping Socially Disadvantaged Applicants, which include Alaskan natives, American Indians, African Americans, women, Hispanics, Native Hawaiians, Asians, and Pacific Islanders. These SDAs may not be on equal platforms as other applicants for they are minority groups. If you fall into this category, these loans are certainly one to consider if you are in need of a loan. For SDAs, loans available include Direct Farm Ownership loans, Guaranteed Loans, and Direct Operating loans. In order to be considered for this loan, the applicant must voluntarily indicate her or his demographic information including race, ethnicity and gender. This enables the application to be considered on the basis of such information in addition to other eligibility information.


Youth Loans

These particular loans are aimed to provide youth, between ages 10 and 20 in their pursuit to establish income producing projects. Youth wanting to apply for these loans are encouraged to have or be currently participating in FFA or 4-H clubs or other similar farm or ranching organizations. The maximum amount that can be loaned in this loan is $5000 and may be used to pay operating expenses for a project, buy seeds, equipment, supplies, and livestock, buy, repair, or renting of equipment and tools needed for the project. The youth project seeking this loan must have supervision and be a part of an organized program of work specially designed to provide practical farm educational or business experience. The program must also be guided and operated under the help and supervision of an adviser. Additionally, the designated project must have the capacity to produce sufficient income which a part of will go towards repayment of the loan.


© 2017 Farm Ag Loans. All rights reserved.


Warning: Unknown: open(/home/content/83/3556183/tmp/sess_q35c5j08otlb0fkb1m1l2ouc70, O_RDWR) failed: No such file or directory (2) in Unknown on line 0

Warning: Unknown: Failed to write session data (files). Please verify that the current setting of session.save_path is correct () in Unknown on line 0