Higher limits are now available for USDA’s farm loans, which will help producers with ever increasing capital needs. Farm Service Agency Administrator in Washington D.C., Richard Fordyce, says the 2018 Farm Bill increased the amount producers can borrow for farm operating loans, which assists producers in paying for expenses like machinery, equipment, seed, livestock and feed.
He says the farm bill also raised farm ownership loan caps, which help producers become owner-operators of family farms and can benefit farmers looking to improve and expand current operations.
Farmers and the lending community had asked for the higher limits and Fordyce says they are especially helpful with the current economic climate in agriculture, combined with additional financial needs tied to recent disasters.
FSA also made changes in microloans and emergency loans. Producers can receive both a $50,000 Farm Ownership Microloan and a $50,000 Operating Microloan. Previously they were limited to $50,000 combined. These provide credit for small, beginning and niche farms. Farmers can get more information at their local FSA office.
