Grow Your Farm: You the Seed, Your Capital the Fertilizer

Grow Your Farm- You the Seed Your Capital the Fertilizer

Today’s American farmers produce crops that put food on American tables. From 2009 to 2016, The country has also exported a trillion dollars worth of agricultural products, helping feed the rest of the world.

While there has been growth in the number of commercial farming enterprises the recent decades, many of the U.S. farms remain to be owned and operated by families — individuals, family partnerships and family corporations.

Farm Land Loans

Agriculture still remains a big business in this country. And with it comes the big need for a lot of land. For farmers to continue producing bounty yields, they need a land to work on and the financing to cover the cost of land purchase, expansion or rehabilitation. Farm land loans provide the access to capital.

Guaranteed Farm Loans

The United States Department of Agriculture (USDA) through the Farm Service Agency (FSA) offers guaranteed loans with can be used to buy new farm land or expand existing ones. Just like any other federally-backed loan, the loan is funded and serviced by a commercial lender. The FSA guarantees the loan.

One type of a guaranteed Farm Loan under the FSA is the EZ Guaranteed Loan. It has a maximum loan amount of $100,000. The application is streamlined to that the loan processing becomes easier for farmers. Just like the other guaranteed farm loans, it can be used for the purchase of new farms or expansion. It is done to assist beginner or underserved farmers.

Direct Farm Ownership Loan

Unlike the guaranteed loan programs, the FSA also has a Direct Farm Loan which is funded by the agency itself. There are three types of loans under this program — regular, joint financing and down payment.  The loan can provide 100 percent financing to purchase a farm.

The fund comes from the appropriations set by the Congress every for the USDA. Local farm loan officers and managers process and service this loan through the FSA.

>>Look for a Direct Farm Loan.>>

USDA Microloan

To provide more farm financing options to American farmers and ranchers the USDA, through the FSA, has created the Microloan Programs. The fund comes from the annual USDA budget. The programs are focused on the need of new, small or niche farmers.

There are two types of loans under the Microloan Program. First is the Direct Farm Ownership Microloan and the Direct Farm Operating Loan. Both of these loan types have a maximum loan cap of 50,000 dollars.

Commercial Farm Loans

Aside from the federally-backed farm loan products, there are also many loan options offered by commercial banks and lending institutions. Many of these banks have specialized departments to cater to agricultural financing.

These banks and institutions know the people they do business with and are equipped with knowledge on the state of the agricultural market in the area.

Whether you are a budding farmer or a big player in the industry, the capital is an essential tool to better the business. Tapping on farm land loans can help you with the much-needed capital. Shop for a farm loan lender. Be certain you know the loan they offer and the overall cost of this financing. With the right information, you will be able to find a farm land loan that will best suit your needs.

>>Find a Farm Loan Lender Here.>>