New Farmers Encouraged To Apply For USDA Loans

Running a farm, regardless of commodity, can be very expensive.  Starting a farm from the ground up is even more expensive.  To help the USDA offers farm loans for beginning farmers and ranchers, via FSA.

Jason Quintana with Yakima's FSA office says these loans are geared for those who cannot obtain commercial credit from a bank.  He noted while there is a lot of paperwork associated with these loans; USDA just wants to make sure all applicants are successful.

“We're looking at your total operation, whereas sometimes you would look at some of these other structures of loans where they're looking more towards what you make versus what you have," he said.  "And debt and looking at different ratios, we like to use those ratios, but more of indicators of where you're at.”

It's All In The Details

Quintana added once the application is submitted, USDA takes a deep dive into cash flow.

“Agriculture is one of the most volatile industries that I've seen and it just it's easier when you plan for the worst-case scenario and that's what we try and do is have these conservative numbers go through budgets and throughout this time we're building kind of a relationship going through so that there's that trust on both sides," Quintana noted.  "So, I feel like USDA, we really pride ourselves on making sure that we put the producers first and try and help out in every way. I mean, even if we do get to that point of a denial, it's not because of anything against them.  It's just, that's probably the best thing for the agency and for them.”

Your Local FSA Office Will Have Loan Details

All direct farm ownership applicants must have participated in the business operations of a farm for at least three out of the last ten years prior to the date the application is submitted to FSA.  Guaranteed loans are made by lending institutions who arrange for FSA to guarantee the local.  FSA can guarantee up to 95% of the loss of principal and interest on a loan. 

Visit FSA's Website to learn more, or for loan details.

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