Throughout the years, farming has been one of the front-runners in the American economy. It’s well within our tradition to see hardworking men and women in different farm types who raise cattle and poultry, plow fields, plant crops and sow oats. And even up to this day, this industry is alive and well.
Today, farming has improved for the better and is still one of the top contributors to the country’s economy. Which is why there are numerous loan options that would finance a farmers’ desire to start his own farm.
It’s nice to know that the agriculture industry has now transcended far from what it once was. Traditional farms aren’t the only ones that help this industry anymore. In fact, you don’t have to open up a big farm if you are not ready for it. You can start small or in your own backyard, or on any extra land in your property.
Farm types that are also product-specific. These can be meat farms, crop farms, dairy farms and many others.
Small farms, by definition per the USDA, are farms that turn a profit between $1,000 to $250,000 in a year. Anything beyond that is categorized as large farms.
As mentioned, small farms could be started from your own backyard and you can sell your harvested products in your local farmer’s market. Usually, first-time farmers start on a small scale and then let it grow from there.Thinking about getting a farm loan? Ask our lenders.
Hobby farms are becoming a trend these days. These are small-scale farms that are usually self-sustaining and generally generates a good profit. But these farms do not generally serve as their primary source of income.
This type of farm is for a home with at least five acres of land. If you decide to get financing for a hobby farm, 20% down payment is generally required.
Through urban farms, farming or gardening in a village, in a town or within the city has become a trend as well. If you have seen small farms that are grown in either rooftops or patios from one of your neighbors in the city, those are thriving urban farms.
As the economy progresses, the more society makes room for urbanization. This makes urban farming a possibility for farmers within these vicinities and in a bigger picture, these farms could have a lot of benefits to the society.
Where do I apply for farm loans?
Starting a farm can cost a lot of money. Which is why there are more than a few who can provide good financing to this cause. For one, the United States Department of Agriculture (USDA) and their Farm Service Administration (FSA) offer specific types of farming loans.
Under the FSA, there are three main loan types. First, the offer the Direct Farm Ownership Loan. This loan can be used to buy a farm, make some repairs or improvements.
Other than that, the FSA provides Targeted Agriculture Financing. These are loans that are promoting farming opportunities to minority groups, the youth, beginner farmers, and women.
Another type of program is the Microloan Program. Still under the FSA, the Microloan Program gives financing to small-scale farms and/or niche farms for non-traditional farmers.
All in all, there is a good amount of faith in the agriculture industry. No matter how big or small, they will always be a key player in the American Economy. Therefore it’s a good thing that there is a lot of support to keep this industry flourishing.Want to get matched with a lender? Click here.