USDA offers loans to beginning farmers
Washington, D.C. –
The USDA will offer loans up to $35,000 to assist small farmers, veterans, and disadvantaged producers.
The program seeks to expand access to credit to those just starting in farming, to help grow a new generation of farmers and ensure the strength of the American agriculture sector.
For those who want to grow niche crops to sell directly to ethnic markets and farmers markets, the microloan program offers a path to obtain financing.
USDA farm loans can be used to purchase land, livestock, equipment, feed, seed, and supplies, or to construct buildings or make farm improvements. Producers can apply for a maximum of $35,000 to pay for initial start-up expenses such as hoop houses to extend the growing season, essential tools, irrigation, delivery vehicles, utilities, land rents, marketing, and distribution expenses.
Small farmers often rely on credit cards or personal loans, which carry high interest rates and have less flexible payment schedules, to finance their operations. Expanding access to credit, USDA’s microloan will provide a simple and flexible loan process for small operations.
Producers interested in applying for a microloan may contact their local Farm Service Agency office.