It’s a known fact that the United States Department of Agriculture ( USDA) has been helping aspiring and hard working farmers all over the country. The USDA offers agricultural loans with different purposes to cater farmers with specific needs.
The agriculture industry has long been proven to be one of the biggest contributors to the economy. Agricultural produce continuously provides food to a majority of the American household and the agricultural businesses all other the country provides employment and income for many individuals as well.
Which begs to prove that agriculture is an essential aspect of the society. But ultimately, its strength gives fire to passionate farmers who continuously strive hard to provide food and other agricultural products for all.
Other than USDA home loans, the department provides assistance to farmers and ranchers as well. Thanks to the agency known as the Farm Service Agency, the agriculture industry is properly conserved and regulated. They offer agricultural loans for many existing and aspiring farmers in the country.
Standard Farm Loan Programs
As mentioned, the FSA provides agricultural loans programs of different intents and purposes. Let’s do a roundup of the various loan programs under the FSA.Get more information about loans under the USDA here.
Direct Operating Loans
For the financial needs of a farm’s operation like buying new equipment, feed and fertilizers, chemicals, and other operation-related expenses, getting direct operating loan is the way. Other than purchasing, this loan can also finance improvements to your farms and repair costs for farm buildings.
Beginner farmers and ranchers have a perfect loan option for them. For small farms, niche farms, specialty crop and other non-traditional farms, microloans can make their farming goals a possibility. One thing that makes these agricultural loans a good option is that this type gives fewer hassles because it only requires less paperwork.
Direct Farm Ownership Loans
Purchasing a farm or ranch land is the main purpose of this type of agricultural loan. Other than that, this loan can finance construction and improvement costs of existing farm buildings as well as water and soil protection resources.
For those borrowers who can’t qualify for a standard commercial loan, a good choice as an alternative is a guaranteed loan.
Target-specific agricultural loans
As for the youth who are participants of 4-H clubs, FFA, and other similar organizations, the FSA offers a youth loan that can give financing to different agriculture-related efforts.
Loans for the Minority and Women Farmers and Ranchers
For loan programs for the minority and women farmers and ranchers, the FSA also offers those types of loans. These can help them get financing for land purchase and other farm business related projects.
Beginning Farmers and Ranchers
If your farm has been in operation for less than 10 years, this loan option is the answer. Typically, standard farm loans would be a little hard for you to obtain so the FSA has created a loan option that targets this certain demographic.
These types of agricultural loans are the answer to any financing needed after disaster strikes. Nature is an uncontrollable force but FSA can help you rebuild your farm business through their emergency loans.
Native American Loans
True to its name, Native American Loans offers financing opportunities to native Americans who seek to build their farms on tribal lands.Thinking about getting an agricultural loan? Ask us!