Farm Operating Loans for Individuals

Farm Operating Loans

This program may have additional incentives or benefits for those who are underserved. Learn more about our terminology.

 

What is this program?

The Farm Service Agency offers loans to help farmers and ranchers get the financing they need to start, expand, or maintain a family farm.

 

How can I use this program?

Farm Operating Loans can be used for normal operating expenses, machinery and equipment, minor real estate repairs or improvements, and refinancing debt.

 

Who or what is eligible and what are the eligibility requirements?

Applicants must be able to meet the following eligibility requirements:

• Be a family farmer.
• Have a satisfactory credit history.
• Be a citizen of the United States, including Puerto Rico, the U.S. Virgin Islands, Guam, American Samoa, Commonwealth of the Northern Mariana Islands, Republic of Palau, Federated States of Micronesia and the Republic of Marshall Islands; a U.S. non- citizen national or a qualified alien under federal immigration law.
• Be unable to obtain credit elsewhere at reasonable rates and terms to meet actual needs.
• Have the legal capacity to incur the obligations of the loan.
• Not have outstanding unpaid judgments obtained by the U.S. in any court, excluding judgments filed in U.S. Tax Courts.
• Not be delinquent on a federal debt.
• Must not have provided FSA with false or misleading documents or statements in the past.
• Not have been convicted under federal or state laws of planting, cultivating, growing, producing, harvesting, or storing a controlled substance within the last 5 crop years.
• Not have received debt forgiveness from FSA (certain exceptions apply).
• Be within the time restrictions as to the number of years they can receive FSA assistance.

 

Are there any deadlines?

No. You should begin the application process a few months in advance of needing the funds to allow time for the request to be processed.

 

Is there anything else I should know?

• When applying for a loan, you will need a business plan, which must include:
  • Your mission, vision, and goals for your farm or ranch
  • Your current assets and liabilities
  • Marketing Plan (what your operation will produce and where you will market/sell your products)
  • Whether the amount of income your operation generates will be enough to pay your business and family living expenses
• Preference given to socially disadvantaged and beginning farmers. Read more here.
• Repayment term may vary, but it cannot exceed seven years
• Annual operating loans are generally repaid within 12 months or when the commodities produced are sold

 

How do I apply?

• Use the Loan Assistance Tool to check your eligibility for FSA Loans, discover FSA loan types, learn about FSA Loan requirements, and walk through the easy-to-understand instructions when completing the forms.
• Apply at your local USDA Service Center

 

 

 

Page last updated: January 29, 2024