Submitted article
The Farm Service Agency (FSA) reminds farmers that the FSA borrowing limit for microloans is up to $50,000. Microloans offer borrowers simplified lending with less paperwork.
The microloan lending increase from $35,000 allows beginning, small and mid-sized farmers to access an additional $15,000 in loans using a simplified application process with up to seven years to repay.
To complement the microloan program additional changes to FSA eligibility requirements will enhance beginning farmers access to land, a key barrier to entry level producers. FSA policies related to farm experience have changed so that other types of skills may be considered to meet the direct farming experience required for farm ownership loan eligibility. Operation or management of non-farm businesses, leadership positions while serving in the military or advanced education in an agricultural field will now count towards the experience applicants need to show when applying for farm ownership loans.
Eligible applicants can apply for a maximum amount of $50,000 to pay for initial start-up expenses such as hoop houses to extend the growing season, essential tools, livestock, irrigation and annual expenses such as seed, feed, fertilizer, utilities, land rents, marketing, and distribution expenses. Individuals interested in applying for a FSA microloan or would like to discuss other farm loan programs available, should contact their local FSA office to setup an appointment with a Loan Approval Official. For more information, visit www.usda.gov/farmbill. To learn more about FSA, visit www.fsa.usda.gov or to find your local USDA office, visit http://offices.usda.gov.