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FSA loans<br />
can help with<br />
financing needs<br />
Several options available<br />
depending on situations<br />
If you have<br />
any questions,<br />
please contact<br />
your local<br />
FSA Office.<br />
Cedar County<br />
205 W. South St.,<br />
Ste 3, Tipton, IA<br />
52772<br />
(563) 886-6061<br />
Clinton County<br />
1212 17th Ave.,<br />
DeWitt, IA 52742.<br />
(563) 659-3456<br />
By TOM LANE<br />
Farm Service Agency<br />
District Director for SE <strong>Iowa</strong><br />
tom.lane@ia.usda.gov<br />
eastern <strong>Iowa</strong> farmer<br />
The new year is here, and planning for the<br />
coming crop year is underway. Financing is one<br />
of the things that require in-depth planning, and<br />
FSA might be able to help.<br />
FSA’s Farm Loan Programs include a variety<br />
of financing options to help producers to meet<br />
their financing needs. While many of FSA’s<br />
programs are targeted toward beginning farmers,<br />
most programs are also available to more<br />
established farmers to help with a farm expansion,<br />
establishing a new enterprise, or refinancing<br />
debt.<br />
To raise awareness about some of our loan<br />
programs, I will touch briefly on requirements<br />
of the programs. If one catches your interest,<br />
contact your local FSA office for more details.<br />
Microloans are a popular loan option for new<br />
farmers and for producers who grow non-traditional<br />
crops. Microloans have a streamlined<br />
application process, requiring less paperwork.<br />
Loans, which are capped at $50,000, can be<br />
used to fund operating needs, such as buying<br />
livestock or crop inputs, as well as buying capital<br />
items, including machinery. Funds can also<br />
be used to make limited real estate improvements,<br />
or even to buy land in some situations.<br />
Direct Operating Loans can be used for<br />
many purposes, including funding crop input,<br />
and buying farm machinery or livestock. Eligible<br />
producers can borrow up to $300,000 in this<br />
program, and no down payment is required. Repayment<br />
terms vary from 12 months to 7 years,<br />
depending on use of the loan.<br />
Direct Farm Ownership Loans are used to<br />
buy a farm (just as the name says) or to make<br />
improvements to an existing farm, including<br />
building construction. The three types of Farm<br />
Ownership loans are regular, joint financing and<br />
down payment. The down-payment program is<br />
targeted to underrepresented groups in production<br />
agriculture, including farm operators who<br />
are beginning, female, and racial minorities. The<br />
rates, terms and down payment requirements<br />
vary by program, but $300,000 is the maximum<br />
loan available from FSA under any of these<br />
programs. FSA often partners with other lenders<br />
and can take a second lien on property being<br />
purchased to encourage other lenders to participate<br />
in the financing.<br />
Guaranteed Loans are another financing<br />
option designed to help family farmers to gain<br />
access to credit at competitive rates and terms.<br />
With this program, producers apply to borrow<br />
money from a commercial lender. The lender<br />
then asks for a guarantee from FSA. The guarantee<br />
allows the lender to offer rates and terms<br />
that would not otherwise be available to the producer.<br />
Types of loans available include farm operating<br />
and farm ownership loans. The primary<br />
benefits of the guaranteed loan program include<br />
added flexibility for the lender, the opportunity<br />
to sell the loan on the secondary market, and a<br />
larger loan limit ($1.399 million) than offered<br />
through FSA’s direct loan programs.<br />
Youth Operating Loans are also available<br />
for young people interested in production<br />
agriculture. People between the ages of 10 and<br />
21 can receive up to $5,000 in loans to gain<br />
farm and business experience. Most projects<br />
are tied closely to an FFA or 4-H project. These<br />
loans offer an excellent learning opportunity for<br />
young producers.<br />
FSA has seen tremendous growth in its loan<br />
programs. Interested parties are encouraged to<br />
contact their local FSA office to get more details<br />
and to see whether there is a program that fits<br />
their financing needs.<br />
Dubuque County<br />
210 Bierman Road,<br />
Epworth, IA 52045.<br />
(563) 876-3328<br />
Jackson County<br />
601 E Platt Street,<br />
Maquoketa, IA<br />
52060.<br />
(563) 652-3237<br />
Jones County<br />
300 Chamber Dr.,<br />
Anamosa, IA<br />
52205.<br />
(563) 462-3517<br />
118 <strong>Eastern</strong> <strong>Iowa</strong> <strong>Farmer</strong> | spring <strong>2017</strong>
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