Improvements to USDA Beginning Farmer Loans

By TRACI BRUCKNER

Center for Rural Affairs

USDA recently announced several changes to Farm Service Agency (FSA) loan programs, changes designed to help more beginning farmers and ranchers. The new “interim final rule” will increase the Microloan limit from $35,000 to $50,000. This program provides a simplified application process and a seven year payback. Microloans can be used for approved operating expenses, such as seed, fertilizer, utilities, land rents, marketing, distribution, living expenses, livestock, equipment, hoop houses, tools, irrigation and delivery vehicles.

USDA is also changi...