USDA Increases Loan Limits

If you are planning on taking out a USDA farm loan, the amount of money you can borrow is most likely higher than what you would have seen a year ago.  Undersecretary of Agriculture Bill Northey said the top dollar allowed under many of the loans has not changed for several years, even though farming has become more expensive.

"Equipment is more expensive, land is more expensive, and even the scale of the operation is much greater than it was."

Northey added that's why the Farm Bill authorized USDA to raise limits on what farmers could borrow under a variety of loans.

For example the direct farm operating loan limit was has been increased from $300,000 to $400,000.  USDA doubled the direct ownership limit up to $600,000 and raised limits on a number of USDA loans.

"And so this will allow us to keep up with increasing costs."

To learn more visit the USDA’s Website.

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