Connie Skinner, Farm Loan Manager, for Apache, Coconino, Gila, Mohave, Navajo, and Yavapai, Counties, announces that the U. S. Department of Agriculture, through Farm Service Agency (FSA) makes and guarantees agricultural loans; provides credit counseling and supervision to farmers and ranchers who are temporarily unable to obtain private, commercial credit. FSA lends money and provides credit counseling and supervision to eligible applicants who operate family-size farms. All loans must meet qualifying criteria to be eligible.
Types of loans available: Farm Ownership (FO) Farm Operating (OL) Emergency (EM) Youth Project loans Indian Land Acquisition A Direct or Guaranteed loan provides funds to purchase farm or ranch land; repair buildings and other fixtures; promote soil and water conservation. Farm Operating loan funds may be used to purchase or lease items needed such as livestock, farm equipment, feed, seed, fuel, farm chemicals, insurance or other operating expenses. Qualifications include: must have operated a farm or ranch for at least 3 years (except for Operating loans); be unable to obtain sufficient credit elsewhere; be the owner and/or operator of a family size farm after the loan is closed and not be delinquent on any Federal debt.
Loan amounts: Direct loans can be made up to $200,000.00 Guaranteed loans can be made up $700,000.00. Security: Each loan must be adequately secured. Collateral generally consists of a first lien on crops to be produced, livestock and equipment. A lien may be taken on certain other chattel and real estate property.
Youth Project loans: FSA makes loans up to $5,000.00 to individual rural youth to establish and operate income producing projects of modest size in connection with their participation in 4-H clubs, FFA, and similar organizations. Each project must be part of an organized and supervised program. It must be planned and operated with the help of the organization advisor; produce sufficient income to repay the loan; and provide the youth with practical business and educational experience. Eligible applicants will be between the ages of 10 and 20; live in a town of less than 10,000 people; be unable to obtain a loan from other sources.
Socially disadvantaged program: Funds are available for socially disadvantaged applicants (SDA) to buy and operate family-sized farms and ranches. The SDA program goal is to remove barriers that prevent full participation in FSA’s farm loan programs.