Agricultural loans are programs that focus on helping agricultural farmers with their respective farms. These loan programs mainly provide financial assistance for eligible farmers to solve their problems.
It offers a wide variety of uses such as buying land, capital for operating expenses, marketing of products, and many more. The main objective of these programs is to assist farmers throughout the United States and to promote the industry of agriculture.
However, financial aid from agricultural loans should be repaid with a specific interest. Interest will depend on the type of loan program alongside loan terms.
There’s a broad range of agricultural loans in the United States. Most of these loans were created by the U.S. federal government and managed by the U.S. Department of Agriculture Farm Service Agency.
There are also agricultural loans from private sectors and institutions throughout the United States. However, agricultural loans from the federal government are much better as it offers a lower interest rate rather than private loans.
Moreover, the purpose of agricultural loans is to provide necessary aid for farmers that are not financially stable.
According to statistics, the total number of farms in the United States just reached 2 million. The industry of agriculture is continuously expanding.
However, we can’t deny that there are times that we are experiencing a financial crisis, especially amidst pandemics.
Some farmers are not capable of finding their respective farms, this is where agricultural loans enter. To assist and support farmers to finance their farms and recover from their loans.
There’s a wide variety of Agricultural loans in the United States. Loan programs are different from each other.
Refer below for the list of available Agricultural Loans.
Farm Service Agency Loan Programs
Farm Ownership Loans is an program that assists farmers with their farmland. It provides financial assistance to buy a farm, enlarge a farm, construct buildings and improve farm facilities, promote soil and water protection and conservation, and pay closing costs.
The said program is open and available for both direct and guaranteed loans. The amount of loan through this program can reach up to $600,000 with a maximum payment year of 40 years.
Farm Operating Loans is a loan program that supports the operating costs of the farm. Eligible farmers can use for normal operating expenses, minor real estate repairs, farm machines and equipment, and refinancing farm debt.
This program is open on both direct and guaranteed loans. The loan amount from the said program can reach up to $400,000 with maximum loan repayment of 7 years.
Farm Storage Facility Loans is a program that promotes the on-farm storage and handling facilities and buildings for eligible commodities. Below is the list of commodities under the Farm Storage Facility Loans:
Emergency Loans is a loan program that assists farmers who suffered a great loss as a result of a natural disaster. The farm must be located in the area that was being declared a disaster area by the President or the Secretary of Agriculture.
Financial assistance from the program can be used for the replacement of essential properties, payment for the cost of production associated with the disaster year, reorganizing the operation of the farm, and refinancing certain debts.
The main purpose of this program is to hype farmers to recover from their loss and start a new beginning. The loan amount from these programs can reach up to $500,000.
The qualification rules for all of the U.S. Department of Agriculture Farm Service Agency Programs are similar to each other. Always ensure that you’re qualified for the loan program before applying.
Individuals who are not able to meet the qualification rules are automatically ineligible for the said loans.
Farmers who want to apply for the Farm Service Agency Loans must visit their local Farm Service Agency office to start the application process.
The FSA Office will also determine the eligibility and approval of applicants with their loans. Moreover, the FSA Office will also handle the process of loans for each farmer.
Throughout the application process, farmers must accomplish the following FSA forms below and submit them. Always communicate with your local FSA Office.
Home Loan for Renovation provides financial assistance for homeowners to reconstruct and develop their respective. These programs assist homeowners who want to improve their homes but are not financially secured for the expenses.
Veteran loans are programs of the U.S federal government that provides different loan programs for veterans. It primarily provides financial assistance through loans with a specified interest that needs to be repaid.
Education loan is a program that focus on assisting and supporting each U.S student with their educational expenses. It primarily provides financial assistance for eligible students that can be used while they’re pursuing their education goals.
A mortgage loan is a type of loan that can be used for the purchase of land, home, and asset or property. Most individuals get mortgage loans and use them to buy a housing unit or refinance and renovate a house.
Before you start the application procedure, double-check that you or your organization are eligible for the grant.