Speaker: Lee
Marsh
State
Director, FSA Lending Programs
Richmond, VA
804.287.1500
FSA is an Agency within the United States Department of Agriculture. The mission of the Agency is to assist family farms by providing credit on rates and terms that enhance the opportunity to succeed in farming.
·
FSA has two major loan programs.
·
Direct Loan Programs - loans made directly to
the farmer from the United States Government.
·
Guaranteed Loan
Programs
- provides a government guarantee against loss to a conventional Ag. Lender who
makes the loan to the farmer.
·
Within each loan program exists different loan types.
1.
Farm Ownership loans - loans to purchase and/or improve real estate.
·
Term
40 years.
·
$200,000
maximum loan amount.
·
Current
interest rate 6.75%.
2.
Farm
Operating Loans - loans to provide operating capital and/or to purchase livestock and/or equipment and refinance
certain debts.
·
Term
1 to 7 years.
·
$200,000
maximum loan amount.
·
Current
interest rate 6.25%
3.
Emergency Loans - available when a county is declared an emergency and the farmer has
a qualifying production loss (30%) or physical loss.
·
Term
1 to 7 years production loss, up to 40 years on physical loss.
·
$500,000
maximum loan amount.
·
Current
interest rate 3.75%.
4.
Beginning Farmer Down Payment Farm Ownership loan - purpose is to provide a
down payment for the purchase of a farm.
·
Term
10 years.
·
Maximum
limit lesser of 30% of purchase price or appraised value (up to $75,000).
·
Current
interest rate 4.0%.
1.
Farm Ownership - to purchase an/or improve real estate or refinance debts.
·
Term
- set by lender not to exceed 40 years.
·
$700,000
maximum loan amount.
·
Interest
rate set by lender.
·
FSA
charges 1% one time fee.
2.
Farm Operating - loans to provide operating capital (can be up to 5 year line of
credit - depending on lender) or to purchase livestock or equipment.
·
Term
- from 1 to 7 years.
·
$700,000
maximum loan amount.
·
Interest
rate - set by lender (can receive a 4% reduction).
·
FSA
charges 1% one time fee.
·
General Information.
·
Eligibility - specific eligibility requirements
apply to each different loan type and will be explained by the local FSA Loan
Officer. However, the general
eligibility requirements are:
·
US
citizen or legal permanent resident.
·
Possess
the legal capacity to incur the debt.
·
Have
sufficient education and/or training which indicates managerial ability to
assure a reasonable prospect for success in the operation.
·
Be
unable to obtain credit elsewhere.
·
Be
a family size farm.
·
Has
not caused the Agency a loss by receiving debt forgiveness on a Direct or
Guaranteed loan.
·
Not
be delinquent on any federal debt.
·
Security - In general, adequate
security must be available to secure the debt.
FSA may take up to 150% of the loan amount as security if available.
·
Special Program Initiatives - Each year a portion of
FSA lending authority is set aside for specific groups of applicants.
·
Socially
Disadvantaged Applicants - A socially disadvantaged farmer or rancher is one
of a group whose members have been subjected to racial, ethnic, or gender
prejudice because of their identity as members of the group without regard to
their individual qualities. For
purposes of this program, socially disadvantaged groups are women, African
Americans, American Indians and Alaskan Natives, Hispanics, and Asians and
Pacific Islanders.
Farm Ownership Loans
·
Has
operated a farm or ranch for at least 3 years, but not more than 10 years.
·
Does
not own farm property totaling more than 25 percent of the average county farm
or ranch acreage.
Operating
Loans
·
Has
operated a farm or ranch for 5 years or less.
Where to Apply - Contact you’re your local FSA Office or visit
General
information on FSA Farm
Loan Programs can be obtained at the following Site: http://www.fsa.usda.gov/dafl/flphome.htm
See the following site for specific FSA information:
FSA 410-1 Request for Direct Loan Assistance (4 pages)
FmHA 1945-22 Certification of Disaster Losses