Agriculture Secretary Tom Vilsack this week announced changes to Farm Service Agency loan programs to comply with the new farm bill.

He said the following changes will take place immediately:

• Elimination of loan term limits for guaranteed operating loans.
• Modification of the definition of beginning farmer, using the average farm size for the county as a qualifier instead of the median farm size.
• Modification of the Joint Financing Direct Farm Ownership Interest Rate to 2 percent less than regular Direct Farm Ownership rate, with a floor of 2.5 percent. Previously, the rate was established at 5 percent.
• Increase of the maximum loan amount for Direct Farm Ownership down payments from $225,000 to $300,000.
• Elimination of rural residency requirement for youth loans, allowing urban youth to benefit.
• Debt forgiveness on youth loans, which will not prevent borrowers from obtaining additional loans from the federal government.
• Increase of the guarantee amount on conservation loans from 75 to 80 percent and 90 percent for socially disadvantaged borrowers and beginning farmers.
• Microloans will not count toward loan term limits for veterans and beginning farmers.

• USDA Farm Service Agency — 2014 Farm Bill Fact Sheet