USDA to expand eligibility and size limits on loans
October 09, 2014 | 12:11 AM
The Agriculture Department this week announced plans to expand eligibility and increase lending limits for beginning and family farmers.
The changes become effective November 7.
“USDA is raising the borrowing limit for the microloan program from $35,000 to $50,000; simplifying the lending processes; updating required ‘farming experience’ to include other valuable experiences; and expanding eligible business entities to reflect changes in the way family farms are owned and operated,” Agriculture Deputy Secretary Krysta Harden said in a news release on Tuesday.
“USDA is continuing its commitment to new and existing family farmers and ranchers by expanding access to credit,” said Harden. “These new flexibilities, created by the 2014 farm bill, will help more people who are considering farming and ranching, or who want to strengthen their existing family operation.”
In addition to farm-related experience, other types of skills may be considered to meet the direct farming experience required for eligibility, such as operation or management of a non-farm business, leadership positions while serving in the military, or advanced education in an agricultural field, USDA said.
Also, individuals who own farmland under a different legal entity operating the farm now may be eligible for loans administered by USDA’s Farm Service Agency.
The changes become effective November 7.
“USDA is raising the borrowing limit for the microloan program from $35,000 to $50,000; simplifying the lending processes; updating required ‘farming experience’ to include other valuable experiences; and expanding eligible business entities to reflect changes in the way family farms are owned and operated,” Agriculture Deputy Secretary Krysta Harden said in a news release on Tuesday.
“USDA is continuing its commitment to new and existing family farmers and ranchers by expanding access to credit,” said Harden. “These new flexibilities, created by the 2014 farm bill, will help more people who are considering farming and ranching, or who want to strengthen their existing family operation.”
In addition to farm-related experience, other types of skills may be considered to meet the direct farming experience required for eligibility, such as operation or management of a non-farm business, leadership positions while serving in the military, or advanced education in an agricultural field, USDA said.
Also, individuals who own farmland under a different legal entity operating the farm now may be eligible for loans administered by USDA’s Farm Service Agency.
