USDA OFFERING FARM LOANS FOR FARMERS FACING COVID-19 RELATED CHALLENGES

  

The U.S. Department of Agriculture (USDA) Farm Service Agency (FSA) is reminding agricultural producers that they can apply for farm ownership and farm operating loans to assist them during the COVID-19 pandemic.

Producers who may not have success obtaining loans or commercial credit from their traditional financial institutions because of the pandemic can apply for FSA direct or guaranteed loans.

Gary Six, FSA State Executive Director in Texas, says FSA loans are designed to help beginning and historically underserved farmers and ranchers, along with those who have suffered financial setbacks from natural disasters or economic downturns.

Farm ownership loan funds can be used to purchase or enlarge a farm or ranch, purchase easements or rights of way needed in the farm’s operation, build or improve buildings such as a dwelling or barn, promote soil and water conservation and development, and pay closing costs.

Meanwhile, farm operating loan funds may be used to purchase livestock, poultry, farm equipment, fertilizer, and other materials necessary to operate a farm.  Funds can also be used for family living expenses; refinancing debts under certain conditions; paying salaries for hired farm laborers; installing or improving water systems for home, livestock or irrigation use; and other similar improvements.

Repayment terms for direct operating loans are scheduled from one to seven years.  Financing for direct farm ownership loans cannot exceed 40 years.  Interest rates for direct loans are set periodically according to the government’s cost of borrowing.  Guaranteed loan terms and interest rates are set by the lender.

To learn more about FSA’s farm loan programs, contact a local FSA office or go online to www.farmers.gov.