FSA farm loans available to women and minorities

The U.S. Department of Agriculture Farm Service Agency has a portion of its farm loan program funds specifically allocated for minority and women producers, announced Judy Olson, State Executive Director. “While FSA farm loans are available to all qualified applicants, by setting aside funds specifically for minorities and women, it ensures that they will receive a portion of available funds,” said Olson.

Loan funds can be used to purchase farms, livestock and equipment. They may also be used to operate the farm, build or repair farm service buildings, pay for soil and water conservation practices, and in some cases refinance debts. FSA offers both direct and guaranteed loans

For direct loans made by FSA to purchase a farm the terms may extend to 40 years with a current interest rate of 3.50 %. In addition, if an applicant is able to obtain financing from a private lender equivalent to 50 percent or more of the total funds needed to jointly finance the purchase of the farm, the interest rate on the FSA direct loan would be fixed at 1.50%. Applicants for direct real estate loans need to be aware that funding for this program may be limited, making it necessary to wait for a period of time before funds are available.

Direct operating loans may be made for one to seven years with a current interest rate of 1.5%, which is subject to change. If the rate goes above 5.00% these loans could be made at a rate as low as 5.00% depending on the farm operation's cash flow.

The FSA guaranteed loans are made by banks or other lenders for which FSA guarantees up to 90 percent of any loss. The guaranteed loan program includes both operating and real estate loan programs. the loan limit for guaranteed loans is $1,214,000.

For additional information concerning these programs in Grant or Adams counties, contact Libby Anderson, Farm Loan Manager, at (509) 754-2463 ext. 2.