Posted March 27, 2014
Tom Vilsack, Secretary of the Department of
Agriculture, recently announced modifications to loan programs administered by
USDA’s Farm Service Agency (FSA) resulting from the 2014 Farm Bill, according
to an Agri-Pulse article available here. A Fact Sheet from USDA is available here.
“These improvements to our Farm Loan Programs will help
a new generation begin farming and grow existing farm operations,” Vilsack
said.
The Farm Bill expands lending opportunities for thousands
of farmers and ranchers to “begin and continue operations, including greater
flexibility in determining eligibility, raising loan limits, and emphasizing
beginning and socially disadvantaged producers.”
Changes to take effect immediately include: elimination
of loan term limits for guaranteed operating loans; modification of the definition
of beginning farmer, using the average farm size for the county; modification
of the Joint Financing Direct Farm Ownership Interest Rate from 5 percent to 2
percent less than regular Direct Farm Ownership rate, with a 2.5 percent floor;
increasing the maximum loan amount for Direct Farm Ownership loans from
$225,000 to $300,000; elimination of rural residency requirement for Youth
Loans; and debt forgiveness on Youth Loans; increase of the guarantee amount on
Conservation Loans from 75 to 80 percent and 90 percent for socially
disadvantaged borrowers and beginning farmers.
For more information on farm bills and agricultural
finance and credit, please visit the National Agricultural Law Center’s website
here and here.
