Advertisement

Higher Loan Limits Offered through USDA Farm Loans

Higher Loan Limits Offered through USDA Farm Loans Photo: MGNonline.

April 13, 2019 05:36 PM

(ABC 6 News) –United States Department of Agriculture officials announced changes to the 2018 Farm Bill that would benefit farmers impacted by natural disasters, trade disruptions, and other difficulties.

Officials, in a statement released on Friday, said, “Higher limits are now available for borrowers interested in USDA’s farm loans, which help agricultural producers purchase farms or cover operating expenses. The 2018 Farm Bill increased the amount that producers can borrow through direct and guaranteed loans available through USDA’s Farm Service Agency (FSA) and made changes to other loans, such as microloans and emergency loans.”

Advertisement

The statement included key changes listed below:

  • The Direct Operating Loan limit increased from $300,000 to $400,000, and the Guaranteed Operating Loan limit increased from $ 1.429 million to $1.75 million. Operating loans help producers pay for normal operating expenses, including machinery and equipment, seed, livestock feed, and more.
  • The Direct Farm Ownership Loan limit increased from $300,000 to $600,000, and the Guaranteed Farm Ownership Loan limit increased from $1.429 million to $1.75 million. Farm ownership loans help producers become owner-operators of family farms as well as improve and expand current operations.
  • Producers can now receive both a $50,000 Farm Ownership Microloan and a $50,000 Operating Microloan. Previously, microloans were limited to a combined $50,000. Microloans provide flexible access to credit for small, beginning, niche, and non-traditional farm operations.
  • Producers who previously received debt forgiveness as part of an approved FSA restructuring plan are now eligible to apply for emergency loans. Previously, these producers were ineligible.
  • Beginning and socially disadvantaged producers can now receive up to a 95 percent guarantee against the loss of principal and interest on a loan, up from 90 percent.

For more information on FSA farm loans, visit www.fsa.usda.gov or contact your local USDA service center.


 

KAAL-TV

Copyright 2019 - KAAL-TV, LLC A Hubbard Broadcasting Company

Advertisement
Relay Media Amp
Advertisement

Most Read Stories

Advertisement
Advertisement
Advertisement
Advertisement