Farm Service Agency Farm Loan Programs 2 Farm Loan Programs If - - PowerPoint PPT Presentation

Farm Service Agency

Farm Loan Programs

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Farm Loan Programs

If you are a farmer or rancher who is unable to

• btain credit from another lender to start,

purchase, sustain or expand your family farm you may be able to get a loan through FSA’s Farm Loan Programs. FSA has different types of loans depending on your current situation and what you need the loan for. FSA loan officers are available to assist.

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Farm Loan Programs

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Loan Program Delivery

Direct loan requests are processed and serviced in local offices Guaranteed requests are completed by the lender and producer and submitted to FSA for processing

Farm Loan Programs

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Types of Farm Loan Programs Farm Ownership (FO) Loans Farm Operating (OL) Loans Emergency (EM) Loans (Direct only) Conservation (CL) Loans-(Guaranteed Only)

Farm Loan Programs

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Farm Loan Programs

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Farm Loan Programs General Eligibility Requirements Direct and guaranteed applicants must:

– Be unable to obtain sufficient credit elsewhere – Be a citizen or a legal resident alien – Possess legal capacity to incur the loan

• bligation

– Have acceptable credit history – Be the owner-operator or tenant-operator of a family farm

Farm Loan Programs

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General Eligibility Requirements

Continued

Direct and guaranteed applicants must:

– Not be delinquent on federal debt

– Not have caused the agency a loss by receiving debt forgiveness (some exceptions) – Not have been convicted of planting, cultivating, growing, producing, harvesting, or storing a controlled substance within the last five years

Farm Loan Programs

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FSA Direct Loans

Continued A direct loan applicant must: – Develop a realistic Farm Business Plan that projects repayment ability for the loan – Provide adequate collateral for the loan – Agree to take borrower training courses and “graduate” to private sector credit when able to do so

• - Not exceed restriction on years of eligibility

(OL-7yrs)

Farm Loan Programs

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Direct Loan Making

Operating Loans

Purposes:

Purchase Equipment Purchase Livestock Production Expenses Refinance operating expenses (other than FSA)

OL loans are repaid in 1 to 7 years

Farm Loan Programs

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Direct Loan Making

FO Loans

FO loans can be repaid in up to 40 years Loan Purposes:

Purchase Land Make Capital Improvements Promote Soil and Water Conservation Loan closing and related expenses

Farm Loan Programs

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Guaranteed Loans Guaranteed loans are:

Made and serviced by local agricultural lenders Funded by the lender Often used to help lenders continue with customers who have experienced setbacks

Farm Loan Programs

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Guaranteed Loan Making

Eligibility

To qualify for an FSA Guarantee, a loan applicant must:

– Meet the general eligibility requirements – Be unable to obtain a loan without a guarantee – Have a feasible plan and adequate collateral as determined by the lender

Farm Loan Programs

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Farm Ownership (FO) Loans Farm Operating (OL) Loans Operating Lines of Credit (LOC) Conservation Loan (CL) Types of FSA Guaranteed

Farm Loans

Farm Loan Programs

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FSA provides direct and guaranteed loans to beginning farmers and ranchers The law requires FSA to target a portion of its direct and guaranteed FO and OL funds to beginning farmers Beginning Farmer Loans

Farm Loan Programs

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A good farm business plan is critical Applicants should:

– Set short and long term goals – Plan conservatively – Have records to support production projections & income and expense projections – Have good financial records – Get help from experts (Extension, State Programs, etc.)

Application Tips

Farm Loan Programs

The Farm Service Agency (FSA) developed microloans to better serve the unique financial operating needs of beginning, niche and small family farm operations such as, but not limited to:

• Organic production
• Community Supported Agriculture (CSAs)
• Small scale livestock
• Shellfish operations such as clams or oysters
• Honey or cheese producers

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Microloans

Farm Loan Programs

• Direct farm operating loan;
• Does not exceed $50,000;
• Simplified application process;
• Verification requirements are more proportional

to smaller loans and operations.

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Microloans

Farm Loan Programs

• Initial start-up expenses;
• Seed, fuel, fertilizer, utilities, or labor;
• Farmland rents;
• Purchase of livestock, farm implements or essential

tools;

• Irrigation equipment or delivery vehicles;
• Marketing and distribution;
• Minor farm improvements;
• Hoop houses or high tunnels;
• Family living expenses.

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Microloans

Farm Loan Programs

Senior Loan Officer-Tom Hunton 661-336- 0967 Bakersfield, CA District Director-Nathan Maragoni 661- 336-0967 Bakersfield, CA Farm Loan Chief-John Oostermann 530- 792-5520 Davis, CA Farm Loan Specialist, Gary Ward 1-209- 292-3241 Carlsbad, CA

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Contacts