FSA Loans: The Ultimate Guide

The Farm Service Agency (FSA) provides loans to farmers for working capital and acquisition-related farm expenses. Many FSA loans are funded directly by the government, with the exception of the Guaranteed Farm Loan program, which is originated by lenders and backed by the FSA. There are six primary types of FSA farm loans.

How FSA Loans Work

The Farm Service Agency is an agency within the U. S. Department of Agriculture that’s primarily focused on keeping farming sustainable in the country. As part of this mission, the FSA provides financing to farmers to maintain and expand their farm operations. To apply for a loan you will need to contact your local FSA service office, or download the forms from the FSA website.

In most cases, FSA loans are originated and served by local offices. After your loan is funded, you will begin making monthly payments of principal and interest for the term of the loan. Unlike many loans from the federal government, there are no prepayment penalties associated with FSA farm loans. In the event that you would like to pay your loan off before its maturity, you can do so without paying extra fees.

Who FSA Farm Loans Are Right For

The FSA offers loans to meet the many needs of most farmers. Whether the farm has been in your family for generations and needs an influx of working capital, or you are a beginning farmer looking to purchase a small farm, there is likely an FSA loan that will meet your financial needs.

In general, FSA loans work well for:

• Farmers needing working capital: FSA farm loans can provide farmers with the working capital they need to maintain their operations
• Those looking to purchase a farm: Financing for farm acquisition is available through the Farm Ownership Loan program, and the Guaranteed Farm Loan program
• Existing farms seeking to expand: The Farm Ownership Loan program and the Guaranteed Loan Program allow farmers to expand their farms through acquiring additional real estate or constructing new facilities
• Beginning farmers in need of financing: FSA Youth Loans and FSA Farm Microloans can be used by beginning farmers to start or improve their farming operations

FSA farm loans are an affordable way of financing the needs of your family farm. These loans generally have lower interest rates, and longer repayment terms than you would be able to obtain through a conventional lender—like a bank or credit union.

FSA Loan Costs

There are various costs associated with FSA farm loans, but not all costs apply to all of the loan types. For all FSA loans, you will pay interest on the amount borrowed. Interest rates generally range from 1% to 4% depending on loan type. Additionally, you can expect to pay a credit report fee, which varies based on the structure of your business.

Some loans will have additional closing costs associated, but these can generally be rolled into the loan amount and don’t require additional funds from the borrower before closing. With guaranteed FSA loans, there will also be a loan guarantee fee equal to 1.5% of the loan amount.

The various costs you may encounter with an FSA loan include:

• Interest rate: The interest rates for FSA loans are updated monthly on the agency’s website, but typically range from 1% to 4%.
• Credit report fee: Credit report fees are a one-time fee when applying for a loan, they vary by business structure and by the number of principal applicants, but generally range from $15 to $100
• Guarantee fee: Equal to 1.5% of the loan amount
• Closing costs: Closing costs vary based on the loan type, the amount of the loan, and collateral used to secure the loan. Some fees included in closing costs include recording fees, attorney fees, and related legal fees.

While these are the fees that you may encounter with any FSA loan, not all fees apply to all loan types. For example, loan guarantee fees only apply to the FSA’s Guaranteed Farm Loan program, and not all loans will have additional closing costs involved.

Types of FSA Farm Loans

There are six different types of FSA farm loans that can be utilized for most farm financing needs. These loans include Farm Operating Loans, Farm Microloans, Farm Ownership Loans, Guaranteed Farm Loans, Youth Loans, and Emergency Farm Loans.

Types of FSA Loans

The six types of FSA farm loans available are:

Farm Operating Loans

The FSA’s Farm Operating Loan is a working capital loan specifically for farmers. Loans are offered in amounts up to $400,000, with repayment terms of up to seven years. These loans can be used for a variety of purposes including purchasing equipment, livestock, feed, seed, making minor building repairs, and refinancing existing debts.

Farm Operating Loan Rates & Fees

In general, you can expect to pay a credit report fee at the time of application, closing costs associated with recording any legal documents, and interest on the amount borrowed. The amount of the credit report fee is based on the way your business is structured, and the number of principal applicants for the loan. FSA interest rates are updated monthly and posted on the FSA website.

The rates and fees you can expect with an FSA Farm Operating Loan are:

• Interest rate: 2.625%
• Credit report fee: Varies by business structure and number of principal applicants
• Closing costs: Vary by loan, and can be financed with loan funds

Farm Operating Loan Terms

FSA Farm Operating Loans are offered in amounts up to $400,000. These loans can have repayment terms from one to seven years. Farm Operating Loans can be used to finance general farm operating expenses such as equipment, livestock, building repairs, closing costs, and various other farm related expenses.

The typical terms you can expect with a Farm Operating Loan are:

• Maximum loan amount: $400,000
• Maximum repayment term: Seven Years
• Eligible uses for loan proceeds:
  • Purchase of equipment
  • Purchase of livestock, including poultry
  • Farm operating expenses including feed, seed, fertilizer, pesticides, farm supplies, cash rent, and family living expenses
  • Minor improvements or repairs to buildings
  • Refinance certain farm-related debts, excluding real estate
  • Land and water development, use, or conservation
  • Loan closing and borrower training costs

Farm Operating Loan Qualification Requirements

Qualifying for an FSA Farm Operating Loan is based predominantly on your personal credit. While your credit report will be reviewed to evaluate your payment history on existing obligations, the FSA does not make credit decisions based on credit score alone. Many of the eligibility requirements pertain to being in good legal standing, and your ability to repay the loan.

General qualification requirements for Farm Operating Loans include:

• Eligible farm enterprise: Your farm must operate an agricultural business (e.g., FSA loans cannot finance activities such as raising show dogs, exotic birds, racehorses)
• No convictions for controlled substances: You cannot have any federal or state conviction(s) for planting, cultivating, growing, producing, harvesting, storing, trafficking, or possession of controlled substances
• Legal capacity: You must have the legal ability to accept responsibility for the loan obligation
• Credit history: An acceptable credit history, no delinquency on a Federal debt (other than IRS tax debt), and no previous debt forgiveness by the FSA
• US citizenship: Borrowers must be a United States citizen, non-citizen national or legal resident alien
• Unable to obtain credit elsewhere: Being unable to obtain sufficient credit elsewhere, with or without an FSA loan guarantee
• No Federal Crop Insurance violations: Those with any violations related to Federal Crop Insurance are ineligible
• Managerial ability: You must have sufficient managerial ability as defined by the FSA

Where to Get a Farm Operating Loan

Farm Operating Loans are provided directly through the FSA. To apply for a Farm Operating Loan, you can download the application from the FSA website or visit your local Farm Service Agency office to meet with a loan specialist. If you have questions about the program, or the application process, the FSA provides technical assistance for all aspects of the process upon request.

Farm Microloans

FSA Farm Microloans are available as both ownership loans and operational loans in amounts up to $50,000. The maximum repayment term for a Farm Ownership Microloan is 25 years, and Farm Operation Microloans can have repayment terms of up to seven years. Interest rates for these loans are the same as for Farm Ownership Loans and Farm Operation Loans.

Farm Microloan Rates & Fees

The interest rates for Farm Microloans are tied to the rates for the Farm Operating Loan program and the Farm Ownership Loan program. A microloan for farm operating expenses has an interest rate of 2.625%, while a microloan for farm ownership has an interest rate of 3.25%. You will be required to pay a credit report fee at the time of application.

The rates and fees you can expect with a Farm Microloan are:

• Interest rate: 2.625% for Farm Operating and 3.25% for Farm Ownership
• Credit report fee: Varies by business structure (e.g., LLC, S-corp, C-corp) and number of principal applicants

Farm Microloan Terms

FSA Farm Microloans are offered in amounts up to $50,000. Repayment terms vary based on the type of microloan you receive. A Farm Ownership Microloan can have a repayment term of up to 25 years, and a Farm Operating Microloan can have a repayment term of up to seven years. For either loan, the FSA will require a mortgage in first lien position to be filed against your farm real estate.

The general terms associated with a Farm Microloan are:

• Maximum loan amount: $50,000
• Maximum repayment term: 25 years for Farm Ownership Microloan, seven years for Farm Operating Microloan
• Collateral: First lien position on farm property

Farm Microloan Qualification Requirements

The qualification requirements for a Farm Microloan are the same as those for a Farm Operating Loan. However, managerial ability is defined differently depending on the type of microloan you are applying for. Farm Ownership Microloans require three years of management experience, while Farm Operating Microloans require less experience and offer mentorship during the first production cycle.

The general qualification requirements for FSA Microloans are:

• No convictions for controlled substances: You cannot have any Federal or State conviction(s) for planting, cultivating, growing, producing, harvesting, storing, trafficking, or possession of controlled substances
• Legal capacity: You must have the legal ability to accept responsibility for the loan obligation
• Credit history: An acceptable credit history, no delinquency on a Federal debt (other than IRS tax debt), and no previous debt forgiveness by the FSA
• US citizenship: Borrowers must be a United States citizen, non-citizen national or legal resident alien
• Unable to obtain credit elsewhere: Being unable to obtain sufficient credit elsewhere, with or without an FSA loan guarantee
• No Federal Crop Insurance violations: Those with any violations related to Federal Crop Insurance are ineligible
• Managerial ability:
  • Direct Farm Ownership Microloans: Three years of farm management experience within 10 years of the application dates. One year farm management experience may be substituted with one of the following:
  • 16 credit hours Post-Secondary Education in Agriculturally-related field
  • Business management, of at least one year direct management experience
  • Military leadership or management from having completed an acceptable military leadership course
  • Successful repayment of an FSA Youth loan
• Direct Farm Operating Microloans: Microloan applicants need to have some farm experience; however, small business experience and agricultural internships, and apprenticeship programs count toward meeting the farm management requirement.
• Microloan applicants with minimal farm experience also have the option of working with a mentor for guidance during the first production and marketing cycle.
• It is not necessary for a Microloan applicant to have produced farm income to meet the requirements for managerial experience.

Where to Get a Farm Microloan

To apply for a Farm Microloan, you can download the application from the FSA website or visit your local Farm Service Agency office to meet with a loan specialist. The FSA provides technical assistance to help you with completing the application upon request.

Farm Ownership Loans

Farm Ownership Loans are offered in amounts up to $600,000 at interest rates of 3.25%. These loans have repayment terms of up to 40 years. Loan proceeds can be used to purchase an existing farm, construct a new farm, enlarge your farm, or construct new facilities on your existing property.

Farm Ownership Loan Rates & Fees

The interest rate on Farm Ownership Loans is currently 3.25%. You will be required to pay a credit report fee at the time of application, which varies based on your business structure and the number of principal applicants. Additionally, because Farm Ownership Loans generally involve the transfer of real estate, closing costs can be $2,000 or more. However, closing fees can be paid for with loan proceeds.

The typical rates and fees you can expect with a Farm Ownership Loan are:

• Interest rate: 3.25% (current rates updated monthly)
• Credit report fee: Varies by business structure and number of principal applicants
• Closing costs: $2,000 or more

Farm Ownership Loan Terms

Farm Ownership Loans are offered in amounts up to $600,000 and can have repayment terms of up to 40 years. These loans can be used to purchase a farm or ranch, to enlarge an existing farm, and to construct or improve dwellings or service buildings associated with the farm operation.

The terms you can expect with a Farm Ownership Loan are:

• Maximum loan amount: $600,000
• Maximum repayment term: 40 Years
• Eligible uses for loan proceeds:
  • Purchase of a farm or ranch
  • Enlarging an existing farm or ranch
  • Down payment on a farm purchase
  • Purchase of easements
  • Construction, purchase or improvement of farm dwellings, service buildings, or other facilities essential to the farm operation
  • Soil and water conservation and protection
  • Loan closing costs

Farm Ownership Loan Qualification Requirements

The qualification requirements for a Farm Ownership Loan are based primarily on your personal history and financials. While your credit report will be reviewed to evaluate your payment history on existing obligations, the decision to extend credit is not based on credit score. Many of the eligibility requirements for a Farm Ownership Loan require being in good standing on current obligations and your ability to repay the loan.

The qualification requirements for a Farm Ownership Loan are:

• Eligible farm enterprise: Your farm must operate on an agricultural basis (e.g., FSA loans cannot finance activities such as raising show dogs, exotic birds, racehorses)
• Family farm: You must be the owner-operator of a family farm after loan closing
• No convictions for controlled substances: You cannot have any Federal or State conviction(s) for planting, cultivating, growing, producing, harvesting, storing, trafficking, or possession of controlled substances
• Legal capacity: You must have the legal ability to accept responsibility for the loan obligation
• Credit history: An acceptable credit history, no delinquency on a Federal debt (other than IRS tax debt) and no previous debt forgiveness by the FSA
• US citizenship: Borrowers must be a United States citizen, non-citizen national or legal resident alien
• Unable to obtain credit elsewhere: Being unable to obtain sufficient credit elsewhere, with or without an FSA loan guarantee
• No Federal Crop Insurance violations: Those with any violations related to Federal Crop Insurance are ineligible
• Managerial ability: You must have sufficient managerial ability as defined by the FSA, demonstrated by at least three years of farm management experience

Where to Get a Farm Ownership Loan

To apply for a Farm Ownership loan, you can download the application from the FSA website or visit your local Farm Service Agency office to meet with a loan specialist. If you have questions about the forms, the FSA provides technical assistance to assist you with completing the application upon request.

Guaranteed Farm Loans

Similar to SBA loans and USDA Business loans, Guaranteed Farm Loans are loans made by lenders and guaranteed by the federal government. The FSA provides a loan guarantee of up to 95% loan-to-value. This guarantee protects the lender in the event that you fail to repay your loan. The added insurance of the FSA guarantee results in lower interest rates for the borrower than would be offered without the protection of the guarantee.

Guaranteed Farm Loan Rates & Fees

Unlike the other types of FSA loans, the FSA does not set the interest rate on Guaranteed Farm Loans; interest rates are determined by the lender. However, the FSA does cap the interest rates so that they cannot exceed the current three-month LIBOR plus 6.5%. In addition to the other fees associated with most loans such as the credit report fee and applicable closing costs there is also a guarantee fee equal to 1.5% of the loan amount.

The rates and fees associated with a Guaranteed Farm Loan are:

• Maximum interest rate: Three-month LIBOR + 6.5%
• Credit report fee: Varies by business structure and number of principal applicants
• Guarantee fee: 1.5% of the loan amount
• Closing costs: $2,000 or more

Guaranteed Farm Loan Terms

Guaranteed Farm Loans are offered in amounts up to $1.75 million with repayment terms of up to seven years for operating expenses, and up to 40 years for real estate. Loan proceeds can be used for any farm purposes; including purchasing livestock, feed, equipment and real estate.

The typical terms for an FSA Guaranteed Farm Loan are:

• Maximum loan amount: $1.75 million
• Maximum repayment term: Seven years for operating loans, 40 years for ownership loans
• Eligible uses of loan proceeds: Loan proceeds can be used for any farm purpose identified for either the Farm Ownership Loan program or the Farm Operating Loan program

Guaranteed Farm Loan Qualification Requirements

Guaranteed Farm Loans have the same standard requirements as other FSA loans. However, because these loans are made by lenders—and not directly by the FSA—lenders may have additional eligibility requirements that you will need to meet. For example, while the FSA is not concerned about your credit score, a lender may have a specific credit score requirement.

The qualification requirements for an FSA Guaranteed Farm Loan include:

• Operate a family farm: Day-to-day management of the farm must be made by family members, and family must provide both physical labor and management of the farm
• Eligible farm enterprise: Your farm must operate on an agricultural basis (e.g., FSA loans cannot finance activities such as raising show dogs, exotic birds, racehorses)
• Family farm: You must be the owner-operator of a family farm after loan closing
• No convictions for controlled substances: You cannot have any Federal or State conviction(s) for planting, cultivating, growing, producing, harvesting, storing, trafficking, or possession of controlled substances
• Legal capacity: You must have the legal ability to accept responsibility for the loan obligation
• Credit history: An acceptable credit history, no delinquency on a Federal debt, other than IRS tax debt, and no previous debt forgiveness by the FSA
• US citizenship: Borrowers must be a United States citizen, non-citizen national or legal resident alien
• Unable to obtain credit elsewhere: Being unable to obtain sufficient credit elsewhere, with or without an FSA loan guarantee
• No Federal Crop Insurance violations: Those with any violations related to Federal Crop Insurance are ineligible
• Managerial ability: You must have sufficient managerial ability as defined by the FSA and demonstrated by at least three years of farm management experience

Where to Get a Guaranteed Farm Loan

The Farm Service Agency maintains a list of approved guaranteed lenders. To locate a lender that offers guaranteed farm loans you can contact your local FSA office, ask the lender you would like to work with if they are part of the program, or browse the list located on the FSA website.

Youth Loans

For young people involved in a project through 4-H, Future Farmers of America, or a similar program, the FSA offers youth loans in amounts up to $5,000. These loans are intended to allow youth to foster agriculture-related skills. Aside from interest on the loan, there are no additional fees associated with an FSA Youth Loan.

Youth Loan Rates & Fees

The only fee associated with an FSA Youth Loan is the interest rate charged on the loan. Youth Loans follow the interest rate for FSA Farm Operating Loans. The current interest rate for a Youth Loan is 2.625%; however, these rates change monthly.

Youth Loan Terms

Youth Loans are offered in amounts up to $5,000 and can have repayment terms from one to seven years. These loans can be used for all operating purposes including buying livestock, seed, equipment, and other general operating expenses associated with the project.

The terms you can expect with an FSA Youth Loan are:

• Maximum loan amount: $5,000
• Repayment term: One to seven Years
• Eligible uses for loan proceeds:
  • Buy livestock, seed, equipment and supplies
  • Buy, rent, or repair needed tools and equipment
  • Pay operating expenses for the project

Youth Loan Qualification Requirements

The primary qualification requirement for a Youth Loan is that the project must be approved by the FSA. Approval of the project is based on the project producing enough income to repay the loan, the educational value of the agricultural project, and the supervision of the project through an organization.

The qualification requirements for an FSA Youth Loan are:

• FSA approved project: Your project must be approved by the FSA in order to receive funding. To be approved it must:
  • Be able to produce sufficient income to repay the loan amount plus accrued interest in-full
  • Be related to agricultural
  • Be educational
  • Be part of an organized and supervised program
• US citizenship: Borrowers must be a United States citizen, non-citizen national, or legal resident alien
• No convictions for controlled substances: You cannot have any Federal or State convictions for planting, cultivating, growing, producing, harvesting, storing, trafficking, or possession of controlled substances
• Credit history: An acceptable credit history, no delinquency on a Federal debt (other than IRS tax debt) and no previous debt forgiveness by the FSA

Borrowers between the ages of 10 and 20 years must have the consent of a parent and/or legal guardian. Young people applying for a Youth Loan are personally responsible for repaying the loan. A co-signer will be required if the project shows that it may have difficulty repaying the loan.

Where to Get a Youth Loan

To apply for an FSA Youth Loan, you can download the application from the FSA website or visit your local Farm Service Agency office to meet with a loan specialist. Applicants under 18 must have an adult co-signer. The FSA provides technical assistance to assist you with completing the application upon request.

Emergency Farm Loans

When a natural disaster or emergency is declared by the federal government, farmers whose production was affected due to the disaster are eligible for an Emergency Farm Loan. These loans are offered in amounts up to $500,000 with repayment terms that extend as long as the remaining useful life of the collateral.

Emergency Farm Loan Rates & Fees

The interest rate on Emergency Farm Loans is currently 3.625%. Additionally, you will be required to pay a credit report fee at the time of application, which varies based on your business structure and the number of principal applicants.

The rates and fees associated with an Emergency Farm Loan are:

• Interest rate: 3.625%
• Credit report fee: Varies by business structure and number of principal applicants

Emergency Farm Loan Terms

The maximum loan amount for an Emergency Farm Loan is $500,000, but the amount received cannot exceed the actual loss experienced by the farmer. Repayment terms vary, and are based on the remaining useful life of the collateral securing the loan.

The typical terms for an Emergency Farm Loan are:

• Maximum loan amount: $500,000 but limited to the actual loss caused by disaster
• Repayment term: Based on remaining useful life of collateral
• Eligible uses for loan proceeds:
  • Restore or replace essential property
  • Pay all or part of production costs associated with the disaster year
  • Pay essential family living expenses
  • Reorganize the family farming operation
  • Refinance certain non-real estate operating debts

Emergency Farm Loan Qualification Requirements

To qualify for an Emergency Farm Loan, applicants must meet all of the eligibility requirements for a Farm Operating Loan, and your farm operations must have been significantly impacted by a natural or declared disaster. In addition to these standard requirements, there are additional qualification requirements that you must meet.

In addition to the general qualification requirements for an FSA loan, there are additional requirements for the Emergency Loan program:

• Established farmer: You must be an established farmer and either the owner-operator or tenant-operator of the farm at the time the disaster occurred
• Continued operations: Despite the disaster, you must intend to continue farming
• Unable to obtain credit elsewhere: You must get written declinations of credit from organized commercial lending institutions
• Time since disaster: Applications must be received by the FSA no later than eight months after the date the disaster is declared or designated
• Loss related to disaster: The loss and/or damage to the farm operation must be directly attributed to the disaster declaration
• Crop insurance: Will be required for the coming year in order to receive a loan

Where to Get an Emergency Farm Loan

To apply for an Emergency Farm Loan, you can download the application from the FSA website or visit your local Farm Service Agency office to meet with an emergency farm loan specialist. If you have questions about the multiple forms that make up the application, the FSA provides technical assistance to assist you with completing the application upon request.

Pros & Cons of FSA Loans

FSA Loans have low interest rates and longer-than-average repayment terms. Your credit score is not a deciding factor in loan approval, but rather your recent repayment history is taken into consideration. However, your farm is often used as collateral, you need to have farm experience, and your farm must be family operated.

Pros of FSA Loans

Some advantages of FSA farm loans include:

• Low interest rates: Compared to other small business loans, FSA loans offer farmers financing at much lower interest rates than are otherwise available
• Longer repayment terms: With repayment terms extending up to 40 years for farm real estate purchase, FSA farm loans have terms up to 15 years longer than other financing methods
• Your credit score is not a deciding factor: While your credit is reviewed to determine your repayment history on other debts, your credit score is not the deciding factor

Cons of FSA Loans

Some disadvantages of FSA farm loans include:

• Your farm is used as collateral: In the event that you are unable to repay the loan, you risk losing your farm.
• You must have farm experience: In order to be approved for an FSA farm loan, you need to be able to prove that you have significant farm managerial experience.
• You must operate a family farm: While your business structure does not need to be a sole-proprietorship, your farm does need to be considered a family farm. This means that you, and members of your family, manage and provide physical labor.

Alternatives to FSA Farm Loans

While FSA loans are a great low cost financing option for most farmers, they may not work for all farm businesses. If your farm operation is not a family farm, or the purpose of your loan does not align with the eligible loan purposes of an FSA loan, you may want to consider an alternative. Some common alternatives to FSA loans include SBA loans, USDA loans, equipment financing, and business lines of credit.

Some alternatives to FSA loans include:

SBA 7(a) Loans

For those that don’t meet the family farm requirement for FSA loans, the Small Business Administration (SBA) 7(a) loan program offers guaranteed loans to small businesses in amounts up to $5 million. Repayment terms on these loans can extend up to 10 years (25 years for real estate).

SBA 7(a) loans can be used for working capital, to purchase inventory and supplies, to finance fixtures and equipment, or to purchase real estate. SBA loans provide a low cost source of capital to business; however; they can be difficult to qualify for.

USDA Business & Industry Loans

USDA Business and Industry (B&I) Loans are the most accessible of the business loans offered by USDA. The maximum loan guarantee amount for USDA B&I Loans is $10 million. Repayment terms can extend up to seven years (30 years for real estate). Funds can be used for modernization and development of an existing business, purchase of real estate/equipment, refinance existing debt, or acquisition that will preserve jobs.

Equipment Financing

For those seeking financing to purchase equipment, equipment financing may be a good alternative. Equipment financing uses the equipment you already own, or the equipment you are purchasing, as collateral for financing. Much like a personal auto loan, the business equipment protects the lien. In the event you default on the loan, the lender can take possession of the equipment in lieu of repayment on the remaining debt.

Business Line of Credit

Unlike many of the other alternatives, a business line of credit does not typically require you to put up collateral to secure the debt. You may, however, be required to provide a personal guarantee. With a line of credit, you are able to borrow and repay funds up to your credit limit repeatedly without the need to reapply for funding.

FSA Loan Frequently Asked Questions (FAQs)

A lot of information has been covered about FSA loans, including what they are, the different types of FSA loans, and the qualification requirements for each.

Some frequently asked questions pertains to FSA loans include:

What is an FSA loan?

An FSA loan is a loan issued or guaranteed by the USDA Farm Service Agency (FSA). These loans are made to farmers and ranchers to acquire, operate, and expand farm operations. FSA loans are either made directly by the FSA or by a lender with a guarantee provided by the FSA.

How do I get an agriculture loan?

The most common source of agriculture loans is the Farm Service Agency (FSA). FSA loans are intended to help farmers and ranchers acquire, operate, and expand their farms. Loans can be used to purchase equipment, livestock, and feed, to cover general operating expenses, and to acquire farm real estate.

Can you get a loan to start a farm?

Getting a loan as a beginning farmer can be challenging, but there are loan programs available to help aspiring farmers begin their journey. The FSA has a beginning farmer and rancher initiative that allows those with prior farm experience to begin farming on their own through financing with an FSA loan.

Bottom Line

FSA farm loans can be a great financing option for farmers in all stages. Experienced farmers can utilize FSA loans to supplement their working capital needs, acquire additional farm space, or to repair or construct farm buildings. Beginning farmers can use FSA loans to purchase a farm, provide a down payment, or to begin acquiring livestock.