Farm Ownership Loans

Farm Ownership Loans offer essential financial support to farmers and ranchers aiming to purchase, develop, or expand their agricultural operations. Administered by the Farm Service Agency (FSA), these loans are available in different forms to meet a variety of needs, including the purchase of farmland, construction of farm buildings, and making improvements to existing structures and infrastructure.

Program Features:

• Eligibility: Applicants must be U.S. citizens or permanent residents, have sufficient education, training, or experience in managing a farm, and demonstrate an ability to repay the loan. Specific eligibility requirements may vary depending on the type of ownership loan.
• Loan Types:
  • Direct Farm Ownership Loans: Provide financing directly from the FSA for the purchase and development of farm property.
  • Guaranteed Farm Ownership Loans: Issued by commercial lenders but guaranteed by the FSA, reducing the lender's risk.
  • Down Payment Program: Helps beginning farmers and ranchers by requiring only a 5% down payment.
  • Joint Financing: FSA provides financing in conjunction with other lenders, covering up to 50% of the purchase cost.
• Loan Amounts:
  • Direct Loans: Up to $600,000.
  • Guaranteed Loans: Up to $2,236,000
  • Down Payment Program: Up to 45% of the purchase price or appraised value.
• Interest Rates and Terms: Competitive interest rates with repayment terms of up to 40 years for real estate and other long-term improvements.

How to Enroll: To apply for Farm Ownership Loans, producers must submit a loan application to their local FSA office. The application process includes providing documentation of financial history, farm business plan, and other required information. Detailed enrollment instructions and deadlines are available through the local FSA office or the official USDA website.

Eligibility: Eligible applicants include U.S. citizens or permanent residents with sufficient training or experience in farming. Applicants must demonstrate an ability to repay the loan and meet specific criteria depending on the type of ownership loan they are applying for.

While FSA is committed to serving all farmers and ranchers, by statute, FSA targets a portion of all Direct Farm Ownership loan funds to historically underserved farmers and ranchers, which include:

• Women
• African-Americans
• Alaskan Natives
• American Indians
• Hispanics
• Asians
• Native Hawaiians and Pacific Islanders

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Official Program Page

Farm Loans Fact Sheet

FSA Loan Assistance Tool

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Farmers.gov Loan Information

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