FSA allocates funds 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 women and minority producers announced Judy Olson, State Executive Director. “By setting aside funds specifically for women and minorities, it ensures that they will receive a portion of available funds,” said Olson.

Loan funds can be used to purchase farms, livestock and equipment. Funds 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%. Special programs are available for participation with a commercial lender. For rates and terms and down-payment requirements, contact the local FSA office.

Direct operating loans may be made for one to seven years with a current operating interest rate of 1.125%, subject to change each month. If the rate goes above 5%, the loans could be made at a rate as low as 5% depending on the farm operation's cash flow.

FSA-guaranteed loans are made by banks or other lenders for which FSA guarantees up to 90% of any loss. Loan limits for FSA guaranteed loans have increased to $1,302,000 for 2013. The guaranteed loan program includes operating and real-estate loans.

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