Loan program available to some farmers

State Executive Director for USDA?s Iowa Farm Service Agency (FSA), John R. Whitaker, reminds interested applicants that loan programs are available to assist eligible beginning and socially disadvantaged (SDA) farmers and ranchers to buy and/or operate family-size farms and ranches. For FSA farm loan program purposes, SDA groups include women, African-Americans, American Indians and Alaskan natives, Hispanics, Asians, Native Hawaiians and Pacific Islanders.

?Over 75 percent of all FSA direct farm loans in Iowa are to beginning or socially disadvantaged farmers and ranchers,? said Whitaker. ?Our experienced loan officers find resources and provide individualized planning to serve the needs of under-represented groups in the agricultural community.?

FSA loans money directly to eligible farmers and also provides guarantees on loans made by other lenders. Farm ownership or farm operating loans may be obtained directly from FSA for up to $300,000. Loans guaranteed by FSA can reach a maximum indebtedness of $1,355,000.

Operating loans may be used for various short and intermediate credit needs, such as the purchase of livestock, equipment, and annual operating expenses. Farm ownership loans may be used for the purchase and/or improvement of farm or ranch real estate. Repayment terms for direct operating loans depend on the collateral securing the loan and have a term of one to seven years. Repayment terms on direct farm ownership loans can extend to 40 years.

Applications for all FSA direct loan programs are made through the local FSA office. Guaranteed loan applications are processed by the participating lender.

For more information on farm loans or other programs administered by FSA, visit your local Farm Service Agency office or go online at www.fsa.usda.gov