Current FSA Loan Interest Rates
Program. Interest Rates. Farm Operating- Direct. 1.750% Farm Operating – Microloan.
In this regard, does FSA make direct loans?
FSA provides guaranteed and direct loans. Under a guaranteed loan, a commercial lender makes and services the loan, and FSA guarantees it against loss up to a maximum of 95 percent of loan value.
Subsequently, how long does it take to get a FSA loan?
Once an applicant provides all the financial and organizational information to the lender, the lender submits a guaranteed loan application to the local FSA office and the request will be approved or disapproved within 30 days after receipt of a complete application.
How many acres do you need for a farm loan?
Farm Acreage Limitations
So, to meet the beginning farmer requirement, a loan applicant may not own more than 28.2 acres when the loan application is submitted.
Acreage is another way to assess farm size. According to the USDA , small family farms average 231 acres; large family farms average 1,421 acres and the very large farm average acreage is 2,086. It may be surprising to note that small family farms make up 88 percent of the farms in America.
Maximum Loan Limits
FSA can guarantee standard Operating loans, Farm Ownership loans, and Conservation loans up to $1,825,000; this amount is adjusted annually each Fiscal Year based on inflation. The maximum loan limit for Land Contract Guarantees is $500,000.
First time farmers can have a tough time qualifying for a loan. Like any business, it is hard to get financed when you don’t have a track record of sales. … USDA farm loans come with low interest rates, backed by the federal government.
FSA’s Direct Farm Ownership loans are used to: buy a farm or ranch. enlarge an existing farm or ranch. … construct, purchase or improve farm dwellings, service buildings or other facilities and improvements essential to the farm operation. promote soil and water conservation and protection.