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Higher limits now available on USDA ag loans


SD Ag Connection - May 5, 2019

WASHINGTON, D.C. - Higher limits are now available for borrowers interested in USDA's ag loans, which help agricultural producers purchase ranches or farms or cover operating expenses. The 2018 Farm Bill increased the amount that producers can borrow through direct and guaranteed loans available through the Farm Service Agency and made changes to other loans, such as microloans and emergency loans.

As part of the change, Direct Operating Loan limit increased from $300,000 to $400,000, and the Guaranteed Operating Loan limit goes from $1.4 million to $1.75 million. Operating loans help producers pay for normal operating expenses, including machinery and equipment, seed, livestock feed and more.

In addition, the Direct Farm Ownership Loan limit is now $600,000; and the Guaranteed Farm Ownership Loan limit increased to $1.75 million. Ranch and farm ownership loans help producers become owner-operators of family holdings as well as improve and expand current operations.

Meanwhile, producers can now receive both a $50,000 Farm Ownership Microloan and a $50,000 Operating Microloan. Previously, microloans were limited to a combined $50,000. Microloans provide flexible access to credit for small, beginning, niche, and non-traditional ranch and farm operations.

And producers who previously received debt forgiveness as part of an approved FSA restructuring plan are now eligible to apply for emergency loans. Previously, these producers were ineligible.

For more information on FSA ag loans, contact a local USDA Service Center.



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