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Loan amounts increased for farmers

There is more money available this year through USDA's Farm Service Agency.

February 28, 2020

1 Min Read
tractor and applicator in young corn field
FINANCING FARM: Farmers can access more money to not only purchase a farm, but also buy inputs such as seed for this growing season. Mindy Ward

Farmers now can borrow more money from USDA as it has increased its loan limits.

USDA’s farm loans offer help to agricultural producers wanting to purchase farms or cover operating expenses.

The 2018 Farm Bill increased the amount that producers can borrow through direct and guaranteed loans available through USDA’s Farm Service Agency and made changes to other loans, such as microloans and emergency loans.

Key changes include:

  • Direct Operating Loan limit increased to $400,000

  • Guaranteed Operating Loan limit rose to $1.776 million

  • Direct Farm Ownership Loan limit doubled to $600,000

  • Guaranteed Farm Ownership Loan limit now $1.776 million

Producers now can receive two microloans. They can get a $50,000 Farm Ownership Microloan and a $50,000 Operating Microloan. Previously, microloans were limited to a combined $50,000. Microloans provide flexible access to credit for small, beginning, niche and nontraditional farm operations.

Producers who previously received debt forgiveness as part of an approved FSA restructuring plan now are eligible to apply for emergency loans. Previously, these producers were ineligible.

Beginning and socially disadvantaged producers now can receive up to a 95% guarantee against the loss of principal and interest on a loan, up from 90%.

Source: USDA, which is solely responsible for the information provided and is wholly owned by the source. Informa Business Media and all its subsidiaries are not responsible for any of the content contained in this information asset.

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