Posted March 27, 2014
Tom Vilsack, Secretary of the Department of Agriculture, recently announced modifications to loan programs administered by USDA’s Farm Service Agency (FSA) resulting from the 2014 Farm Bill, according to an Agri-Pulse article available here. A Fact Sheet from USDA is available here.
“These improvements to our Farm Loan Programs will help a new generation begin farming and grow existing farm operations,” Vilsack said.
The Farm Bill expands lending opportunities for thousands of farmers and ranchers to “begin and continue operations, including greater flexibility in determining eligibility, raising loan limits, and emphasizing beginning and socially disadvantaged producers.”
Changes to take effect immediately include: elimination of loan term limits for guaranteed operating loans; modification of the definition of beginning farmer, using the average farm size for the county; modification of the Joint Financing Direct Farm Ownership Interest Rate from 5 percent to 2 percent less than regular Direct Farm Ownership rate, with a 2.5 percent floor; increasing the maximum loan amount for Direct Farm Ownership loans from $225,000 to $300,000; elimination of rural residency requirement for Youth Loans; and debt forgiveness on Youth Loans; increase of the guarantee amount on Conservation Loans from 75 to 80 percent and 90 percent for socially disadvantaged borrowers and beginning farmers.
For more information on farm bills and agricultural finance and credit, please visit the National Agricultural Law Center’s website here and here.
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