Loan opportunities expand to help beginning farmers

Expanding loan opportunities to beginning and socially disadvantaged farmers and ranchers is the goal of a program recently introduced by the U.S. Department of Agriculture's Illinois Farm Service Agency.
"U.S.D.A. continues to find ways to improve our services for farmers and ranchers by streamlining processes, accelerating delivery and using innovative solutions to 21st century agricultural issues," said Scherrie Giamanco, Illinois FSA executive director.
"These improvements demonstrate FSA's commitment to helping the next generation of America's farmers and ranchers participate in our nation's agricultural economy. The new flexibility also enlarges the pool of potential farmland buyers, which is important to young, beginning and socially disadvantaged farmers, who start out or operate without established credit."
The eligibility changes announced last week increase access for farmers and ranchers to FSA loans and credit assistance. The new rule enables landowners to sell their farmland to the next generation on a contract for deed, with a 90-percent guarantee against losses to the seller.
Also, the agency can provide a guarantee of three years' amortized loan installments, plus payment of real estate taxes and hazard insurance premiums for the same three-year period.
"U.S. agriculture is experiencing its most productive period in decades, thanks to the productivity, resiliency and resourcefulness of America's producers," Giamanco said. "These improvements will help producers and businesses maintain this competitive edge."
In late 2011, FSA announced a series of process improvements that included quicker disaster assistance and fewer reporting dates. More information can be found at www.fsa.usda.gov.