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. "While FSA farm loans are available to all qualified applicants, 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.

Farm Service Agency now offers more flexible access to credit through the new Micro Loan Program. The program is an attractive loan alternative for smaller farming operations like specialty crop producers and operators of community supported agriculture, or CSA. Micro loans can be used for all approved operating expenses as authorized by the FSA Operating Loan (OL)program, including, but not limited to, initial start up expenses, annual expenses such as seed, fertilizer, utilities, and rents, purchase of livestock and/or equipment, or minor farm inprovements such as wells and coolers.

Eligible applicants may obtain a Micro Loan for up to $35,000. The repayment term may vary and will not exceed seven years. Annual operating loans are repaid within 12 months or when the agricultural commodities produced are sold. Interest rates are based on the regular operating loan rates that are in effect at the time of the micro loan approval or closing, whichever is less. Current interest rates are 1.375%. Please contact the Farm Loan staff at the County Office for more loan program details.

Direct Operating loans may be made for one to seven years with a current operating interest rate of 1.375%, which is subject to change each month. Maximum operating loan levels are $300,000.

Direct Farm Ownership loans can be made by FSA to purchase a farm, the terms may extend to 40 years with a current interest rate of 3.5%. Maximum ownership loan levels are $300,000.

Participation farm ownership loans can also be made with FSA and a commercial lender. For rates and terms and down-payment requirements, please contact the local FSA office.

FSA Guaranteed Loans are made by banks or other lenders for which FSA guarantees up to 9