FSA loans help new farmers start and grow operations
The U.S. Department of Agriculture (USDA) is helping new farmers and ranchers through loan programs offered by the Farm Service Agency (FSA). These loans are designed for those who cannot access commercial credit.
FSA offers two types of loans: direct loans and guaranteed loans. Direct loans are issued by FSA, while guaranteed loans are provided by banks but backed by FSA for up to 95% of the loss on the loan.
The loan programs include farm ownership and farm operating loans. Ownership loans can be used to buy or expand farmland, build or improve structures, or support conservation. Operating loans can cover expenses like livestock, equipment, seeds, family needs, or irrigation improvements.
To qualify as a beginning farmer or rancher, applicants must have farmed for less than 10 years and actively participate in operations. For ownership loans, applicants should not own land exceeding 30% of the average farm size in the county. They must also have three years of farming experience in the past decade, although education or military service may be accepted as a substitute.