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!