The face of the American farmer is ever-changing. The country was founded as an agrarian community. Historically, farming families made up these societies. Their produce provided food for their family and the market. In the present time, our farmers do not only produce food for the consumption of Americans, their crops and livestock also help feed the rest of the world.
A growing number of non-traditional farmers have also surfaced in the recent years. Their methods of growing crops may have changed but some needs remain the same. In order to operate a farm, land is needed. This land entails financing, thus the emergence of loans catering to farmers’ financial needs.
Farm Mortgage Loans, Providing Opportunities to Sustain the Industry
Whether you are a new emerger in the farming scene, an experienced farm operator or a niche farmer, a farm mortgage loan is available for you. This can be offered by commercial banks and lending companies, as well as the federal government.
Farm Mortgage Loans by the Government
The government basically offers two kinds of Farm Mortgage loans. The Direct Farm Loans are owned, serviced and funded by the federal government. The Guaranteed Farm Loans, on the other hand, is funded and originated by a private lender and insured by the government.
The Direct Farm Ownership Loan can be used to purchase new farms or to expand existing ones by buying additional acreage. The Direct Farm Operating Loan can cover farm operating expenses. Both Direct Farm Loans are serviced and funded by the USDA through local farm loan officers and managers.
Guaranteed Farm Loan Products are owned and serviced by USDA-Approved lenders. The USDA, through the FSA, guarantees these loans so that the borrower’s risk is lowered. These programs can be used for a farm mortgage loan for land purchases, expansion, and improvements.
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Commercial Farm Mortgage Loans
Private banks and lending companies are also traditional sources of farm mortgage loans. These institutions have their own farm loan processes. They also have competitive rates and terms. Many of these banks and companies have departments specializing farming. Others also have an extensive knowledge of the area’s local farming industry. This enables these institutions to come up with loan offers which tailor-fit local farmers.
The Farm Services Agency (FSA)
FSA is the Department of Agriculture’s agency dedicated to assist farmers and nurture the communities where they belong. The agency also assists farmers and ranchers with education and research. Its goal is to carry out one of USDA’s mission to develop and boost farmers through education and financial assistance.
Just like in any other business, the capital fuels farms.The USDA acknowledges this need and addresses it by providing various financing opportunities. There are many amazing loan products offered by the FSA. Large or Small, farm or ranch, the USDA may help farmers get access to capital.
Start shopping for a
farm mortgage loan. Do not limit yourself to just one lender because of familiarity. By shopping around, you may unlock other potentials that you have not explored in the past. Finding the right loan will help you cover your farming needs.
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