The U.S. Department of Agriculture's Farm Service Agency (FSA) has recently announced that there is new funding for farm ownership loans. Sheryl Potocek, Farm Loan Manager of the Farm Service Agency, encourages producers to take advantage of the exciting new funding options available through FSA.
The U.S. Department of Agriculture’s Farm Service Agency (FSA) has recently announced that there is new funding for farm ownership loans. Sheryl Potocek, Farm Loan Manager of the Farm Service Agency, encourages producers to take advantage of the exciting new funding options available through FSA.
Direct Farm Ownership Loans through FSA provides eligible applicants with loans up to $300,000 to purchase a farm. Guaranteed Farm Ownership Loans are obtained from commercial lenders and guaranteed by FSA. Guaranteed loans are available for up to $1,355,000.
Both direct and guaranteed loans have repayment terms up to 40 years. These loan funds may be used to purchase a farm, enlarge an existing farm, construct new farm buildings and improve structures.
The Down Payment Program is a special farm ownership loan program designed to assist socially disadvantaged and/or beginning farmers in purchasing a farm. Retiring farmers may use this program to transfer their land to future generations.
According to Loan Manager Potocek, “In order to qualify, the applicant must make a cash down payment of at least 5 percent of the purchase price.”
Potocek continues, “In addition to the down payment producers are limited to a loan amount of $300,000 and a maximum term of 20 years.”
Remaining balances may be financed through a commercial lender with FSA providing up to a 95 percent guarantee.
Joint Financing arrangements are also available and can be used for farm ownership loans.
According to Potocek, “FSA will finance up to 50 percent of the purchase price of a farm with interest rates as low as 2.5 percent, if the remainder is financed with a commercial lender, a State program, or the seller of a farm.”
Contact FSA office at 570-265-3146 ext. 2 for more information on Farm Ownership Loans, or to schedule an appointment to discuss all of your loan options. Information on FSA loans and other programs is also available online at www.fsa.usda.gov/pa.
USDA is an equal opportunity provider and employer. To file a complaint of discrimination, write to USDA, Assistant Secretary for Civil Rights, Office of the Assistant Secretary for Civil Rights, 1400 Independence Avenue, S.W., Stop 9410, Washington, DC 20250-9410, or call toll-free at (866) 632-9992 (English) or (800) 877-8339 (TDD) or (866) 377-8642 (English Federal-relay) or (800) 845-6136 (Spanish Federal-relay).