A lot of aspiring young farmers all over the country want to have the opportunity to start and operate their own income-producing farming projects. Thanks to the USDA’s Farm Service Agency (FSA), that can be made possible through their youth loans.
This is the perfect avenue that helps young farmers to build their skills for the future and to prepare themselves to become competent farmers in the country.
What is it all about?
Youth loans are farm financing options for young individuals in order to support their modest sized income-producing projects.
These programs should aim to educate, prepare, and develop the skills of a young and aspiring farmer.
This loan provides financing for up to $5,000 to cover the borrower’s operating expenses. Youth loan borrowers should be at least 10 years old to qualify. The oldest that can qualify should be 20 years old.
The projects that can be financed should be in participation in approved agricultural clubs and organizations.
One of these organizations is the Future Farmers of America (FFA). They are an intracurricular student organization for individuals who are interested in leadership and agriculture.
Another example is the 4-H club. They are a community that aims to empower young people through skills that makes them responsible leaders in the future.
Other than that, projects that are in participation with tribal youth groups and similar agricultural youth organizations are also allowed.Interested in getting a farm loan? Ask our lenders.
Who can qualify?
In order to qualify for youth loans, there are certain eligibility requirements that an applicant should meet.
First, the applicant should comply with the general eligibility requirements from the FSA. Second, the applicant should live in a rural areas, city or town with has a population of 50,000 or below.
Lastly, the applicant should conduct an income-producing farming project of modest size. The project should be in a supervised program of work.
How can it be of use?
There are more than a few ways to use the funding for youth loans. First, it should cover the borrower’s income-producing agricultural projects.
Specifically, the money can be used to by livestock, seed, supplies, and equipment. Other than that, it can also cover rent costs and repair costs. Also, it can cover operating expenses for the project.
Are the specific requirements for it?
During application, the applicant must be able to provide a detailed plan for the project as well as its projected budget.
The completed plans should be signed by both the project advisor and the parent or guardian together with the application.
While applicants have to be responsible for repaying the loan, a letter of recommendation is also needed from the project advisor in order to verify that he/she will be the loan applicant’s sponsor.
The project advisor would have to have correct training as well as experience to supervise the project and would have to be available to help whenever needed.
Consent from the parents or legal guardian is also needed for applicants between 10 and 20 years old upon closing.
More information can be obtained from your local USDA service center or through the FSA’s official website. You can also consult USDA-approved lenders regarding more specific matters about their youth loans.Talk to our trusted lenders today.