USDA expands microloans for farmers

New option available to access land

By Diego Flammini
Assistant Editor, North American Content
Farms.com

Without land farmers can’t produce food for communities local and abroad, so the United States Department of Agriculture is taking measures to ease the process when it comes to securing land.

"Many producers, especially new and underserved farmers, tell us that access to land is one of the biggest challenges they face in establishing and growing their own farming operation," said Deputy Secretary Krysta Harden. "USDA is making it easier for new farmers to hit the ground running and get access to the land that they need to establish their farms or improve their property."

The USDA will offer low-interest loans, known as microloans, which farmers can use to buy land or improve pre-existing property. Loans can also be used to purchase buildings and improve soil and water conservation.

There is no minimum loan amount, however the maximum loan amount is $50,000.

Microloans aren’t new to America’s agricultural community.

Already in its third year, the microloan program has provided more than 16,800 low-interest loans to farmers, totaling more than $373 million. Farmers have used the loans in the past to purchase feed, fertilizer, tools, fencing and other expenses.

Approximately 70 per cent of new loans have gone to new farmers, but underserved farmers and military veterans considering a career in agriculture can receive microloans as well.

Farmers are encouraged to contact the Farm Service Agency (FSA) or their local FSA office for all necessary details.

Let us know your thoughts on the USDA expanding the microloans program to include land and buildings.