Farm loans available

9 years ago

 BANGOR, Maine — Maine State USDA Farm Service Agency (FSA) State Executive Director Don Todd III reminds producers that the FSA offers specially targeted farm ownership and farm operating loans to targeted underserved groups.

“Farming and ranching is a capital-intensive business and FSA is committed to helping producers start and maintain their agricultural operations,” said Todd. In fiscal year 2015, Maine FSA obligated $4.47 million in direct and guaranteed loans to targeted underserved farmers.

FSA defines targeted underserved as those who have not operated a farm or ranch for more than 10 years, do not own a farm or ranch greater than 30 percent of the average size farm in the county if applying for a farm ownership loan, and who substantially participate in the operation of the farm. Targeted underserved may also include those subjected to prejudice.

Targeted underserved producers who may not be able to obtain commercial credit from a bank can apply for either FSA direct loans or guaranteed loans. Direct loans are made to applicants by FSA. Guaranteed loans are made by lending institutions who arrange for FSA to guarantee the loan.

The direct and guaranteed loan program offers farm ownership loans and farm operating loans.

Farm ownership loan funds may be used to purchase or enlarge a farm or ranch, purchase easements or rights of way needed in the farm’s operation, build or improve buildings, promote soil and water conservation and development and pay closing costs.

Farm operating loan funds may be used to purchase livestock, poultry, farm equipment, fertilizer, and other materials necessary to operate a successful farm, and also living expenses, refinancing debts, salaries for laborers, installing or improving water systems for home, livestock, or irrigation use, and similar improvements.