FAQ: USDA has announced the availability of a streamlined version of USDA guaranteed loans, tailored for smaller scale farms and urban producers. Please tell me more about this program.

Answer: The program, called EZ Guarantee Loans, uses a simplified application process to help beginning, small, underserved and family farmers and ranchers apply for loans of up to $100,000 from USDA-approved lenders to purchase farmland or finance agricultural operations.

"Over the past seven years, we’ve been transforming our loan programs at USDA so that they can be attainable and useful to all kinds and sizes of producers," said U.S. Ag Secretary Tom Vilsack, who recently announced the EZ Guarantee Loans. "The EZ Guarantee Loans will help beginning and underserved farmers obtain the capital they need to get their operations off the ground. These loans can also be helpful to folks who have been farming for some time but need extra help to expand or modernize their operations. USDA's Farm Service Agency has offices in nearly every county in the country, and we encourage all farmers, including those in urban areas, to stop in and inquire about this program."

New category of lender approved to offer these loans
USDA also unveiled a new category of lenders that will join traditional lenders, such as banks and credit unions, in offering USDA EZ Guarantee Loans. Microlenders, which include Community Development Financial Institutions and Rural Rehabilitation Corporations, will be able to offer their customers up to $50,000 of EZ Guaranteed Loans, helping to reach urban areas and underserved producers. Banks, credit unions and other traditional USDA-approved leaners, can offer customers up to $100,000 to help with agricultural operation costs.

According to the 2012 Census of Agriculture, 75% of all farm operations gross less than $50,000 per year. EZ Guarantee Loans offer low interest rates and terms up to seven years for financing operating expenses and 40 years for financing the purchase of farm real estate. USDA-approved lenders can issue these loans with the Farm Service Agency guaranteeing the loan up to 95%.

Review program details and submit your comments
USDA is providing a 90-day period for the public to review and comment on program improvements. To review program details, visit regulations.gov, reference RIN 0560-AI34 and follow the instructions to submit comments.

More than half of all FSA loans go to new farmers and more than a quarter to underserved borrowers. FSA also offers loans of up to $5,000 to young farmers and ranchers though the Youth Loan Program. Loans are made to eligible youth to finance agricultural projects, with almost 9,000 young people now participating. More information about the available types of FSA farm loans can be found at fsa.usda.gov/farmloans or by contacting your local FSA office. To find your nearest office location, visit offices.usda.gov.

An additional tool to support local food systems
USDA's EZ Guarantee Loans are an additional tool to support strong local and regional food systems, as well as organic agriculture. Across USDA, the Know Your Farmer, Know Your Food Initiative coordinates USDA policy, resources and outreach efforts related to local and regional food systems. Over the past seven years, USDA has helped provide consumers a stronger connection to their food with more than $1 billion in investments to over 40,000 local and regional food businesses and infrastructure projects since 2009. Industry data estimates that U.S. local food sales totaled at least $12 billion in 2014, up from $5 billion in 2008. Learn more about USDA investments connecting producers with consumers and expanding rural economic opportunities online at USDA Results - New Markets, New Opportunities.

USDA has also developed new markets for rural-made products, including more than 2,700 biobased products through USDA's BioPreferred program; and invested $64 billion in infrastructure and community facilities to help improve the quality of life in rural America. For more information visit usda.gov/results.