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FSA ‘Microloan’ Program offered

February 6, 2014

in National

fsaAdministered through USDA’s Farm Service Agency (FSA) Operating Loan Program, the new microloan program offers credit options and solutions to a variety of producers. FSA has a long history of providing agricultural credit to the nation’s farmers and ranchers through its Operating Loan Program. In assessing its programs, FSA evaluated the needs of smaller farm operations and any unintended barriers to obtaining financing. For beginning farmers and ranchers, for instance, the new microloan program offers a simplified loan application process. In addition, for those who want to grow niche crops to sell directly to ethnic markets and farmers markets, the microloan program offers a path to obtain financing. For past FSA Rural Youth Loan recipients, the microloan program provides a bridge to successfully transition to larger-scale operations.

Producers can apply for a maximum of $35,000 to finance livestock, equipment, expenses such as hoop houses to extend the growing season, essential tools, irrigation, delivery vehicles, and annual expenses such as seed, fertilizer, utilities, land rents, marketing, and distribution expenses. As their financing needs increase, applicants can apply for an operating loan up to the maximum amount of $300,000 or obtain financing from a commercial lender under FSA’s Guaranteed Loan Program. Small farmers often rely on credit cards or personal loans, which carry high interest rates and have less flexible payment schedules, to finance their operations. Expanding access to credit, USDA’s microloan will provide a simple and flexible loan process for small operations.

For more information contact the Pettis County FSA at 1407 W. 32nd St, Sedalia, MO 65301 or by phone at 660-826-3339 ext 108.

FSA Farm Loan Program interest rates for February:

- Operating/Microloan-2.0%

- Farm Ownership-Down Payment-1.5%

- Farm Ownership-Regular-4.25%

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