USDA Offers farm loans for underserved and beginning farmers

SPOKANE—The U.S. Department of Agriculture (USDA) Farm Service Agency (FSA) reminds producers that FSA offers farm ownership and farm operating loans to underserved applicants as well as beginning farmers and ranchers. Underserved or beginning farmers and ranchers who cannot obtain commercial credit from a bank can apply for FSA direct or guaranteed loans.

“FSA loans are designed to make sure that everyone has access to credit including underserved and beginning farmers and ranchers. Last year, FSA in Washington obligated $41.7 million in loans to underserved borrowers and beginning farmers and ranchers.” said Jon Wyss, FSA State Executive Director in Washington State

USDA defines underserved applicants as a group whose members have been subjected to racial, ethnic or gender prejudice because of their identity as members of the group without regard to their individual qualities. For farm loan program purposes, underserved groups are American Indians or Alaskan Natives, Asians, Blacks or African Americans, Native Hawaiians or other Pacific Islanders, Hispanics, and women.

In order to qualify as a beginning farmer, the individual or entity must meet the eligibility requirements outlined for direct or guaranteed loans. Additionally, individuals and all entity members must have operated a farm for less than 10 years.

For more information on FSA’s farm loan programs and underserved and beginning farmer guidelines, please contact your local FSA office or visit farmers.gov.