More Information About USDA Farm Loans

In addition to purchasing farm land, equipment, and materials, a USDA farm loan also can be used to refinance existing farm debt, and under the direct loan funding program, loans can be obtained to fund income-producing projects to youth sponsored organizations like 4-H and FFA.

Limits

USDA farm loan limits are established by the USDA statutes for both direct and guaranteed loans.

  • $5,000 for youth sponsored activities
  • $200,000 for direct operating and farm ownership loans
  • $852,000 for guaranteed operating and farm ownership loans
  • $500,000 for emergency loans

Eligibility

Eligibility for USDA farm loans are similar to other non-guaranteed loan eligibility requirements. An applicant must be a US citizen or a legal resident alien, pass acceptable credit history underwriting, must possess adequate collateral, and have sufficient ability to repay the loan. To be eligible for the USDA farm loan program an applicant must be unable to obtain financing from other lenders or credit sources.

Applicants looking for direct farm ownership assistance must have at least three years of participation experience in a farm or ranch operation. The applicant need not be owner or direct operator of the farm or ranch.

Beginning farmers and ranchers looking for a USDA direct or guaranteed farm loan for farm or ranch ownership must not have operated a farm or ranch for more than 10 years, and must not currently own a farm that totals more than 30% of the average farm acreage in the county.

Farms and ranches are still the backbone industries of America. It is important that these industries continue to thrive in order to feed our citizens and contribute to the world economy. With the help of a USDA farm loan you can be in a prime position to purchase a new farm or ranch, or continue the operations of the old family farm for years to come.

USDA Farm Family

If you are in need of a loan to fix your home or make improvements, and you live in a rural area you may be eligible for the Rural Housing Repair and Rehabilitation Loan. Contact the USDA for more information on this and more valuable loan programs.