USDA Expands Access To Credit To Help More Beginning And Family Farmers
by October 7, 2014 12:16 pm 125 views
The U.S. Department of Agriculture (USDA) is raising the borrowing limit for its microloan program from $35,000 to $50,000 as part of the 2014 Farm Bill overhaul giving farmers better access to capital, Agriculture Deputy Secretary Krysta Harden announced Tuesday (Oct. 7).
The additional $15,000 in loans is among several changes being made in the microloan program to help beginning and family farmers, USDA officials said. Other changes include simplifying the lending processes; updating required “farming experience” to include other valuable experiences; and expanding eligible business entities to reflect changes in the way family farms are owned and operated.
The changes become effective Nov. 7.
“USDA is continuing its commitment to new and existing family farmers and ranchers by expanding access to credit,” said Harden. “These new flexibilities, created by the 2014 Farm Bill, will help more people who are considering farming.”
Harden said the microloan changes will allow beginning, small and mid-sized farmers to access an additional $15,000 in loans using a simplified application process with up to seven years to repay.
In addition to farm-related experience, other types of skills may be considered to meet the direct farming experience required for farm loan eligibility such as operation or management of a non-farm business, leadership positions while serving in the military, or advanced education in an agricultural field.
Also, individuals who own farmland under a different legal entity operating the farm now may be eligible for loans administered by USDA’s Farm Service Agency (FSA). Producers will have an opportunity to share suggestions on the microloan process, and the definitions of farming experience and business structures through Dec. 8, 2014, the public open comment period.
FSA is also publishing a Federal Register notice to solicit ideas from the public for pilot projects to help increase the efficiency and effectiveness of farm loan programs. Comments and ideas regarding potential pilot projects will be accepted through Nov. 7, 2014.