TheUSDA ’s Microloans Programis a loanword opportunity that specifically aim small farms of all types , peculiarly those run byyoung and commence farmersgrowing for local and regional food food market . It ’s administered through the Farm Service Agency , the USDA ’s cite and lending division . The microloans broadcast illustrates a small but pregnant positivist shift in financial backing opportunities within the FSA as the government agency embrace and endure the ontogenesis of small - ordered series farm operations that often have smaller citation indigence .
Specifically , these microloans are offered up to $ 35,000 , which is much lower than the $ 300,000 maximum for the regular FSA farm - mesh loan . Small loan mean less paperwork and a simpler , streamlined lotion unconscious process . intend for little purchases that invest in and develop your farm business , these fund can be used for things like seed , livestock , equipment , marketing and dispersion . You ’ll still need collateral in the form of farm place deserving a minimum of the loanword amount . If you do n’t have that , you could have a third party with collateral co - planetary house .
to boot , you must show sufficient anterior - farming experience to prove this loan is a solid investiture in your line . However , on a good note , the FSA has flexibility in determining what this experience is . For example , you do n’t demand an agriculture academic degree — your experience could lie of internships , form and on - farm utilisation . Interest rate are establish on the regular FSA rates at the clock time of your closing , which are much humbled than a regular money box loanword — as low as 1 to 2 percent .
Matt and Peg Sheaffer , ofSandhill Family Farmsin Brodhead , Wis. , tapped into the FSA microloans curriculum to purchase a refrigerate boxwood - delivery truck to help support their growing community - supported - agriculture business .
“ This new hand truck now helps us improve the quality and freshness of our farm produce when we deliver into the Chicago grocery , ” explain Peg Sheaffer . “ We also diversified to supply cheese , meat and yield contribution , and this hand truck supports us in these tot deliveries , as well . ”
Sheaffer found the process for their $ 25,000 loan straight :
“ Our local FSA representative talked us through the procedure , and it was n’t that pall , ” she says . “ We needed this motortruck and would have figured out a mode to buy it finally , but thanks to this fresh microloans program , we were able-bodied to do it faster and take advantage of terrific terms and interest rate . ”
For more information , contact your local FSA bureau . The Farmers ’ Legal Action Group also offers a freeFarmers ’ Guide to the Farm Service Agency Microloan Program , written by farmers to serve navigate the microloan process .
