USDA offers loans for minorities and women for farms

Friday, August 18, 2006

Nevada Daily Mail

The Nevada office of the USDA Farm Service Agency wants to raise awareness of special loans the agency makes and guarantees to approved "socially disadvantaged applicants" to buy and operate family-sized farms and ranches.

According to a press release, a socially disadvantaged farmer, ranger or agricultural producer is one of a group whose members may have been subjected to racial, ethnic, or gender prejudice without regard to his or her individual qualities. Such groups, the release said, consist of women, African Americans, American Indians, Alaskan natives, Hispanics, Asian Americans and Pacific islanders.

The program:

* Offers direct guaranteed loan assistance to socially disadvantaged persons

* Discovers and removes barriers that prevent full participation in FSA's loan programs

* Provides information and assistance to applicants to help them develop sound farm management practices.

There are several types of loans, and some requirements for the use of loan funds. Direct farm ownership loans and farm operating loans may be made by FSA to approved applicants, or guaranteed farm ownership and operating loans may be made by a lending institution and guaranteed by FSA.

The funds from direct and guaranteed farm ownership loans may be used to purchase a farm or ranch, to erect or improve buildings, to take conservation measures, or to pay closing costs.

Direct and guaranteed operating loans may be used to purchase livestock, farm equipment, feed, seed, fuel, fertilizer, chemicals and other operating expenses. Guaranteed farm ownership loans may also be used to refinance debt.

Qualified applicants must be a citizen of the United States or a legal resident alien, unable to obtain credit elsewhere, not delinquent on a federal debt and have a satisfactory history of meeting credit obligations. Direct farm ownership applicants mush also have participated in the business operations of a farm or ranch for three years.

For more information, contact the local FSA office, 102 W. Allison, Nevada, Mo., call the office at (417) 667-8137, or visit www.fsa.usda.gov.

Respond to this story

Posting a comment requires free registration: