USDA’s Farm Service Agency’s new bill increases loan limits

BANGOR – Deborah Dufour, farm loan chief of USDA’s Farm Service Agency recently announced that the new farm bill is helping make the goal of farming a reality by raising the loan limits to $300,000 (up from $200,000) for direct farm ownership and operating loans.    FSA is working with farmers at the local level and has already started making loans with this higher limit,” Dufour said.  “FSA strives to be the lender of first opportunity and is proud to help the hard-working Americans in Maine who were struggling with the high costs of running a family farm — especially beginning and socially disadvantaged producers.”
   Direct loans are a resource for farmers to obtain the credit they need to build and sustain family farms. Despite continual increases in farm input costs, FSA loan limits had remained unchanged since 1984.  
   The increased loan limits are expected to help farmers whose credit requirements could not previously be met by the FSA loan limits.  In addition, some existing FSA borrowers who have already reached the previous limit of $200,000 will now be eligible to obtain additional credit from FSA.
   Direct farm loans are made by FSA with government funds.  FSA also services these loans and provides direct loan borrowers with supervision and business planning so they have a better chance for success.  
    Farm ownership, operating, emergency, and youth loans are the main types of loans available under the direct program.     
   Direct loan funds are also set aside each year for loans to socially disadvantaged and beginning farmers.
   Farmers interested in applying for a direct operating or farm ownership loan should contact their local FSA office.
   For more information about these and other types of loans, go to FSA’s home page at http://www.fsa.usda.gov and click on “Farm Loan Programs.”