Farm Operating Loans Grants

What is the aim of Farm Operating Loans Grants?

The Farm Operating Loans Grants aims to enable operators of not larger than family farms through the extension of credit and supervisory assistance, to make efficient use of their land, labor, and other resources, and to establish and maintain financially viable farming and ranching operations.

Who are Eligible for the Farm Operating Loans Grants?

Except for youth loans, individual applicants must: (1) Not have caused a loss to the Agency after April 4, 1996, or received debt forgiveness on more than 3 occasions prior to April 4, 1996 to receive a guaranteed loan; (2) have the necessary education and/or farm experience or training (1 year’s complete production and marketing cycle within the last 5 years); (3) do not exceed the limitation on the number of years that assistance may be received; (4) possess the legal capacity to incur the obligations of the loan; (5) be unable to obtain sufficient credit elsewhere at reasonable rates, and terms; (6) project the ability to repay the loan; (7) be a citizen or permanent resident of the United States; (8) after the loan is closed, be an owner/tenant operator of a family farm; and (9) comply with the highly erodible land and wetland conservation provisions of Public Law 99-198 of the Food Security Act of 1985 (FSA); Certain corporations, cooperatives, partnerships and joint operations (“entities”) operating family-sized farms are also eligible for farm operating loans.

In brief, entity applicants must meet some of the same eligibility requirements as individual applicants for the Farm Operating Loans Grants. In addition, if members, stockholders or shareholders of the entity are related by blood or marriage, at least one stockholder, shareholder partner or joint operator must operate the family-sized farm. In the case when members are not related by blood or marriage, the majority interest holders in the entity must actually operate the family-sized farm to be eligible. The entity must be authorized to operate a farm in the State in which it is located. Limited resource applicants must meet the above requirements. In addition, they must have a low income and show a need for increased farm income.

In the case of limited resource entities, all the partners, joint operators, members, or stockholders must be citizens and the entity must be the owner-operator of the family farm with at least one partner, joint operator, member or stockholder operating the farm.

Assistance is authorized for eligible applicants in the 50 States, the Commonwealth of Puerto Rico, the Virgin Islands of the United States, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, and to the extent the Secretary determines it to be feasible and appropriate, the Trust Territories of the Pacific Islands. To be eligible to obtain a direct loan, a borrower must agree to abide by any “borrower training” requirements. Applicants/borrowers requesting guaranteed loan assistance must meet all lender requirements.

How to apply for Farm Operating Loans Grants?

Applicants must prove that credit is not available elsewhere for the requested purposes. Applicants file Form FSA-2001, Application for Direct Loan Assistance, with supporting information, at the local county office of the Farm Service Agency for direct loans or Form FSA-2211 with the prospective lender for loan guarantees.

Where to Apply for Farm Operating Loans Grants?

Headquarters Office
Trent Rogers, USDA-FSA-DAFLP-LMD, 1280 Maryland Ave, SW, Suite 240, Washington, District of Columbia 20024
Email: trent.rogers@wdc.usda.gov
Phone: (202) 7201657 Fax: (202) 690-1117.
Web Site Address: http://www.fsa.usda.gov

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