The FSA offers Direct Farm Operating Loans for farmers starting or expanding a farm. This loan program is a great way for new farmers to get started as the funding comes from the government and has more forgiving guidelines than standard loans.<\/p>\n
\nCompare Offers from Several Mortgage Lenders.<\/a><\/p>\n Farmers can use the FSA Direct Farm Operating Loan for a variety of purposes including:<\/p>\n Farmers can borrow up to $300,000 for the Direct Farm Operating Loan. Different farmers will secure different terms for the loan. It depends on the loan\u2019s purpose and your ability to repay the loan. The \nFSA<\/a> determines this based on your cash flow and projected income for your farm operations.<\/p>\n In general, farmers obtain terms of 12 months for money borrowed for standard operating expenses. Any money borrowed for equipment or livestock purchase can have a term of up to 7 years depending on the circumstances.<\/p>\n First and foremost, you must have an eligible farm in order to be eligible. The funds you receive must be used directly for the farm\u2019s purpose too. Any livestock or machinery used for non-farm purposes cannot utilize the funds from the Direct Farm Loan.<\/p>\n \nClick to See the Latest Mortgage Rates.<\/a><\/p>\n As far as qualifying as an individual, you must meet the following requirements:<\/p>\n Aside from your personal \nqualifying factors<\/a>, you must be able to convince the FSA that you are a good risk. The only way to do this is to have a plan in place for your farm. How do you plan to use the funds? What are your future plans for the farm? What type of experience do you have? These are things the FSA will want to hear from you to determine if you are a good risk for the Direct Farm Operating Loan.<\/p>\n The more proof of your ability to run the farm as well as pay back the loan, the better off your chances of approval will be. While it\u2019s a great idea to have formal business documentation to show lenders that you can operate a business successfully, it doesn\u2019t have to be that way. As long as you can show income, expenses, and cash flow along with the experience you have managing a farm, you can prove to the FSA that you deserve the loan. Obviously the more organized you are the better your chances of approval, but even the greenest farmer can get approved with the right steps.<\/p>\nThe Uses for the FSA Direct Farm Operating Loan<\/h2>\n
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Loan Terms<\/h2>\n
Qualifying for the FSA Direct Farm Operating Loan<\/h2>\n
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