AUGUSTA – The Maine Farm Service Agency would like to announce that the U.S. Department of Agriculture’s (USDA) Farm Service Agency (FSA) makes and guarantees loans to eligible socially disadvantaged farmers (SDA) and beginning farmers to buy and operate family-size farms.
Each fiscal year, the Agency targets a portion of its direct and guaranteed farm ownership (FO) and operating loan (OL) funds to SDA and beginning farmers. An SDA farmer or rancher is a group whose members have been subject to racial, ethnic or gender prejudice because of their identity as members of a group without regard to their individual qualities. These groups consist of American Indians or Alaskan Natives, Asians, Blacks or African-Americans, Native Hawaiians or other Pacific Islanders, Hispanics and women. A beginning farmer is an individual or entity who (1) has not operated a farm for more than 10 years; (2) meets the loan eligibility requirements of the program to which he/she is applying; (3) substantially participates in the operation; and, (4) for FO purposes, does not own a farm greater than 30 percent of the median size farm in the county. (Note: all applicants for direct FO loans must have participated in the business operation of a farm for at least 3 years.)
The Farm Service Agency helps remove barriers that prevent full participation of SDA farmers in FSA’s farm loan programs and provides information and assistance to SDA and beginning farmers to help them develop sound farm management practices, analyze problems and plan the best use of available resources essential for success. Direct and guaranteed farm ownership loans (FO) and farm operating loans (OL) are made by FSA to eligible farmers. OL funds may be used to purchase livestock, poultry, farm equipment, feed, seed, fuel, fertilizer, chemicals, insurance, and other operating expenses. The funds also may be used for training costs, closing costs and to reorganize and refinance debt. FO funds may be used to purchase or enlarge a farm, purchase easements or rights of way needed in the farm’s operation, erect or improve buildings, implement soil and water conservation measures and pay closing costs. Guaranteed FO funds also may be used to refinance debt.
Interest rates for direct loans for March 2012 are 1.375 percent for OL and 3.375 percent for FO. Guaranteed rates and terms are set by the lender. More information and applications can be obtained at the local FSA office serving the area where the operation is located or on the FSA website at www.fsa.usda.gov. Local FSA offices are listed in the telephone directory under U.S. Government, Department of Agriculture or Farm Service Agency.
