![]() The FSA is open to various forms of farm experience beyond an agriculture degree from a land-grant university. To help ensure this, the FSA loan process requires three years of farming experience, including serving in a managerial role on a farm. Like a bank, the FSA wants a farmer-loan recipient to succeed in the venture and not default on the loan. ![]() However, FSA loans often work well for young farmers without capital or the savings for a full down payment. If a bank will give you the full loan to purchase the property and start your farm, you probably won’t qualify for a FSA loan. The FSA describes itself as the “lender of first opportunity,” but what that really means is these loan programs are intended for farmers who are unable to obtain a loan through a traditional bank due to circumstances, such as poor credit history or lack of the required down payment. ![]() Targets Farmers Denied Traditional Credit There are some clear distinctions in the FSA loan process. You’ll need all your financial documentation and your farm business plan organized and clearly communicated. However, the process with the FSA is similar to the application and vetting process for a real-estate or business loan with a traditional bank. Likewise, you’ll receive priority status if you’re a female farmer or from another minority group that qualifies as socially disadvantaged. While the majority of FSA’s programs target larger, commodity-based farm operations, their farm-loan funding pool does prioritize farmers with less than 10 years of experience. There are loan opportunities for both farm purchases and existing operations. The Farm Service Agency, a department of the USDA, has offices in every state that administer these loans, as well as information on other agriculture and land-management programs. These loans are not intended for rural residences or farms operating small, part-time businesses. Note those two pieces of important criteria:įederal farm loans are intended for people who want to farm as their primary source of income, have racked up diverse on-farm experiences and have written a solid business plan for the operation. ![]() These are our tax dollars we’re talking about here, and various programs and opportunities related to farm loans can be tapped into by individuals with agriculture experience and professional-farming aspirations. Let’s first clear up any rumors: There is no free money from the federal government to buy or start a farm. What federal farm loan programs are available to first-time farm buyers? ![]()
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