Updates to FSA Microloan Program

The microloan program, operated by the Farm Service Agency, has recent changes that many farmers will likely appreciate.

First, the loan limit is raised from $35,000 to $50,000.  This means that farmers or ranchers applying for a microloan can now access up to $50,000 for expenses such as:

  • Start-up costs;
  • Input costs (e.g. seed, fertilizer, chemicals, utilities);
  • Marketing and distribution costs;
  • Family living expenses;
  • Purchase of livestock, equipment, machinery or the like essential to the operation;
  • Minor improvements such as wells;
  • Tools;
  • Delivery vehicles; and
  • Irrigation

The above is a small sampling of possibilities to use with microloan funding.

Also of note, microloan funding to beginning and military veteran farmers does not count towards the total number of years a farmer can receive assistance through FSA’s direct loan program.  If you are not a beginning or military veteran farmer, the microloan counts towards the seven year limit in which a farmer can receive FSA direct loan assistance.

If you have any questions about microloans, please feel free to contact us.  We’re always happy to answer your questions!

One thought on “Updates to FSA Microloan Program

  1. Pingback: Some Thoughts As We Begin the New Year | Farmer and Rancher One Stop Shop

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s