USDA is raising the borrowing limit for the microloan program from $35,000 to $50,000; simplify 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. The changes become effective November 7th.
The microloan changes announced will allow beginning, small and mid-sized farmers to access an additional $15,000 in loans using a simplified application process with up to seven years to repay. These efforts are part of USDA’s continued commitment to small and midsized farming operations, and new and beginning farmers.
In addition to farm related experience, other types of skills may be considered to meet the direct farming experience required for farm loan 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. 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 (FSA). Producers will have an opportunity to share suggestions on the microloan process, and the definitions of farming experience and business structures through Dec. 8, 2014, the public open comment period.
These programs were made possible by the 2014 Farm Bill.
USDA Expands Access to Credit to Help More Beginning and Family Farmers
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