Charles Meissen, Farm Loan Manager of the USDA Farm Service Agency for Harrison, Daviess, Gentry, DeKalb, and Worth Counties announced the availability of farm operating and farm ownership loans for women and members of minority groups who want to purchase or operate a family sized farm.
"Each year, the Farm Service Agency earmarks a portion of its farm loan funding for socially disadvantaged applicants, people who have been subjected to racial, ethnic, or gender inequiality without regard to their individual qualities," Meissen said. Socially disadvantaged applicants may be women, African-Americans, American Indians, Hispanics, Asian and Pacific Islanders, and Alaskan Natives.
Meissen said that while funding is earmarked for loans to socially disadvantaged applicants, loan approval is neither automatic nor guaranteed. "Socially disadvantaged applicants must meet the same eligibility criteria as other applicants," he said.
Applicants must be US citizens, have a satisfactory history of meeting credit obligations, have sufficient education, training, or experience managing or operating a farm, possess legal capacity to incur debt, and be unable to obtain credit elsewhere. The agency can make direct loans to applicants who are unable to get commercial credit or provide loan guarantees to commercial lenders.
Guaranteed loans may be made by any lending institution subject to Federal or State supervision (banks, savings and loans, and units of the Farm Credit System). FSA typically guarantees 90 or 95% of the loan against any loss that might be incurred if the loan fails.
Applicants can use operating loans to purchase livestock, equipment, feed, seed, or pay other business related expenses. Operating loans are usually repaid in one to seven years.
Ownership loans provide capital to purchase or enlarge a farm, construct or improve buildings, promote soil and water conservation, and pay closing costs. Direct ownership loan terms are up to 40 years while guaranteed loan terms are established by the lender.
Qualified applicants receive information or assistance to develop sound management practices, analyze problems, and utilize available resources essential for successful farming operations to cope with the changing agricultural environment.
To learn more about FSA Farm Loan programs, contact your local Farm Service Agency at (660) 425-7635 or visit online at www.fsa.usda.gov.
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