Wisconsin Ag Connection - USDA Expands Credit Program for Beginning Farmers

Wisconsin Ag News Headlines

USDA Expands Credit Program for Beginning Farmers
Wisconsin Ag Connection - 10/30/2014

Agriculture Deputy Secretary Krysta Harden announced that the USDA will improve farm loans by expanding eligibility and increasing lending limits to help more beginning and family farmers. As part of this effort, USDA is raising the borrowing limit for the microloan program from $35,000 to $50,000; simplify the lending processes; updating required “farming experience” to include other valuable experiences; and expanding eligible business entities to reflect changes in the way family farms are owned and operated. The changes become effective November 7.

"USDA is continuing its commitment to new and existing family farmers and ranchers by expanding access to credit," said Harden. "These new flexibilities, created by the 2014 Farm Bill, will help more people who are considering farming and ranching, or who want to strengthen their existing family operation."

The microloan changes announced today will allow 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. Microloans are part of USDA's continued commitment to small and midsized farming operations.

In addition to farm related experience, other types of skills may be considered to meet the direct farming experience required for farm loan eligibility such as operation or management of a non-farm business, leadership positions while serving in the military, or advanced education in an agricultural field. Also, individuals who own farmland under a different legal entity operating the farm now may be eligible for loans administered by USDA's Farm Service Agency. Producers will have an opportunity to share suggestions on the microloan process, and the definitions of farming experience and business structures through December 8, 2014, the public open comment period.

Since 2010, USDA has made a record amount of farm loans through FSA with more than 165,000 loans totaling nearly $23 billion.

Other Wisconsin Headlines