This loan program helps family farmers and ranchers to obtain loans with a government guarantee at reasonable terms to purchase farmland or finance agricultural production.
Benefits to Borrowers:
- Low, competitive interest rates
- Long term financing and amortization
- Start-up agricultural business eligible
Maximum Loan Amount: The maximum loan amount adjusts annually each fiscal year based on inflation
Percent of Guaranty: 90%
Use of Proceeds:
- Operating lines of credit
- Farm and Ranch Real estate purchases
- Livestock purchases
- Refinance of debt
- Term Loan – 40 years
- Line of Credit – 5 years
Guarantee Fees: 1.5%
- Must be citizen of the United States or legal resident alien
- Been unable to obtain the loan without a guarantee
- Individual is the owner-operator or tenant-operator of a family farm after the loan is closed
- Beginning farmer/rancher eligible
1 The USDA defines a family farm as a farm in which the family provides most of the day-to-day labor, a family member is the decision maker, and family members provide both physical labor and management for the farm.
All loans are subject to credit approval.