Alright, farmers…you want to borrow some money and you’ve heard about FSA (Farm Service Agency) loans. Here’s what you should know.
The FSA is ‘the lender of last resort’. It lends to farmers who have applied for a loan elsewhere, like at a commercial bank, and been rejected. It has pretty much the lowest loan interest rates on the market. As of writing, it charges:
The FSA will want to see that you know how to farm through education, on-the-job training and/or general farm
experience. For the ownership loan, they require you to show farm management experience for 3 out of the last 10 years.
The FSA does have a special category for beginning farmers or ranchers. But, regardless of your experience, and its desire to promote American farming, this is still a loan, so they will evaluate your:
You can visit this website to find your local FSA office. Just call the main number and as to speak to a Loan Officer. Be ready to say how much you want to borrow and what you want to spend it on, and to describe your operation. Just have a chat. They’ll be able to guide you forward.