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USDA loan programs for farmers

USDA loan programs for farmers

The USDA offers all kinds of loans and funding opportunities to help farmers and forest landowners finance their business or get it off the ground. The following is information about the USDA programs for farmers.

Farm Loans

Farm loans provide funding for everything that farmers could need, including buying land and financing equipment purchases. Targeted funds are made available for underserved groups, with specific loans on offer for youth farmers and Native American tribes. Try to find the right loan type for your situation to get the best deal.

Land Purchase and Construction Projects

Direct Farm Ownership Loans offer financing for farmers to buy land, improve their current operations, boost their productivity, and assist with land tenure to keep the farmland in the family for the next generation. These loans are available for up to $600,000.

A Direct Farm Ownership Microloan is available for up to $50,000. These loans serve the same purpose but are easier to apply for and secure.

Equipment, Livestock, Seed, and Operating Cost Loans

Direct Farm Operating Loans are available to purchase equipment, livestock, seed, and the other essentials of running a farm. These loans also help to refinance other farm-related debts. An operating cost loan is available for up to $400,000.

Similar to ownership loans, operating loans are available as a microloan. The microloans are available for up to $50,000 with a simpler application process.

Youth Farm Loans

Youth loans provide up to $5,000 in financing for youth farmers between 10 and 20 years old. These loans are offered in connection with participation in 4-H, FFA, Tribal Youth Group, and other agricultural-related youth organizations.

Guaranteed Farm Loans

The USDA can help farmers who fail to qualify for standard commercial agricultural loans. Guaranteed farm loans can be obtained for reasonable terms. These loans are used to finance agriculture production or buy new farmland. Get in touch with the local USDA service center near you or a commercial lender that works with the USDA to learn more.

Funding for New Farmers

Funding to Get Started

The USDA has different loans available to support the next generation of farmers. There’s bound to be a Beginning Farmers Loan to suit your needs. Almost every business has a loan to help get it off the ground, and farming is no different.

Business Plan Help

Every business needs a business plan that should include a roadmap for the investment. Put together a business plan or update an existing plan using online tools. The Small Business Association offers help with business plans.

Final Thoughts

The USDA is a great resource for farmers that need assistance. Whether farmers need money to buy land, livestock, or feed – or need help with maintaining and running their farm – there’s bound to be a USDA loan that can help. Contact your local service provider and talk to a representative to learn more and start the application process.