Farm Loans Available in Center and Clinton Counties News, Sports, Jobs
MILL HALL – Holly McCarty of USDA Agricultural Services Agency in Central / County Clinton reminds growers that the FSA has funding specifically earmarked for use by target underserved groups and beginning farmers . These loan programs are designed to help farmers buy and operate family farms.
“With these loan programs, the FSA hopes to help reverse the dwindling number of farmers and ranchers across the United States and particularly here in Clinton / Center County,” Mrs. McCarty said. “These loans help encourage and help them own and operate their own farms and ranches, participate in farming programs and become part of the farming community.”
According to McCarty, the FSA sets aside a portion of its loan funds each year for targeted, underserved groups. The USDA defines a targeted underserved farmer as part of a group whose members have been subjected to racial, ethnic, or gender bias because of their identity as members of the group, regardless of their individual qualities. For the purposes of this program, the underserved groups targeted are women, African Americans, Native American and Alaskan Indians, Hispanics, Asians and Pacific Islanders.
Direct loans are provided to applicants by the FSA and include both farm business loans and farm property loans. The repayment terms for direct operating loans depend on the collateral securing the loan and typically range from 1 to 7 years. Ms. McCarty says repayment terms for direct ownership loans can be up to 40 years. Interest rates for direct loans are set periodically based on the government’s cost of borrowing. The down payment loan program requires the applicant to provide a minimum down payment of 5% in cash, then the loan cannot exceed 45% of the lesser of the purchase price, the appraised value of the farm to be acquired or of $ 667,000.00 and a term not to exceed 20 years. Subject to the direct farm property loan limit of $ 600,000. Down payments made in the form of micro-loans for agricultural property purposes cannot exceed $ 50,000.
Farm property loan funds can be used to buy or expand a farm, purchase easements or rights of way necessary to operate the farm, erect or improve buildings such as a dwelling or barn, promote conservation and development of soil and water, and paying closing costs.
Farm loan funds can be used to purchase livestock, poultry, farm and household equipment, feed, seeds, fuel, fertilizers, chemicals, refinance non-farm debt. real estate, hail and other crop insurance, food, clothing, medical care, and hired labor. The funds can also be used to install or improve water supply systems for domestic use, for livestock or irrigation, and other improvements.
Individuals, partnerships, joint operations, companies and cooperatives primarily and directly engaged in agriculture and breeding on family farms can apply. A family farm is considered a farm that a family can operate and manage on their own.
Secured loans can also be made for property or operating purposes, and can be made by any credit institution subject to federal or state control (banks, savings and credit, insurance companies and units of the agricultural credit system. ). Typically, FSA guarantees 90 or 95 percent of a loan against any loss that might be incurred if the loan fails. The terms of the secured loan are set by the lender. The interest rates for secured loans are set by the lender.
Applicants must meet the eligibility requirements for a given program before the FSA can extend the benefits of the program. For additional information or requests for all FSA direct loan programs, contact your local FSA office at 216 Spring Run Road, Mill Hall PA 17751 or call 570-749-3080. USDA is an Equal Opportunity Employer, Provider, and Lender.