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 The low-interest funds can
be used to build or upgrade permanent facilities to store
commodities. Eligible commodities include corn, grain sorghum, rice,
soybeans, oats, peanuts, wheat, barley, minor oilseeds harvested as
whole grain, pulse crops (lentils, chickpeas and dry peas), hay,
honey, renewable biomass, fruits, nuts and vegetables for cold
storage facilities, floriculture, hops, maple sap, rye, milk,
cheese, butter, yogurt, meat and poultry (unprocessed), eggs, and
aquaculture (excluding systems that maintain live animals through
uptake and discharge of water). Qualified facilities include grain
bins, hay barns and cold storage facilities for eligible
commodities.
Loans up to $50,000 can be secured by a promissory note/security
agreement and loans between $50,000 and $100,000 may require
additional security. Loans exceeding $100,000 require additional
security.
Producers do not need to demonstrate the lack of commercial credit
availability to apply. The loans are designed to assist a diverse
range of farming operations, including small and mid-sized
businesses, new farmers, operations supplying local food and farmers
markets, non-traditional farm products, and underserved producers.
To learn more about the FSA Farm Storage Facility Loan, visit
www.fsa.
usda.gov/pricesupport or contact your local FSA county
office. To find your local FSA county office, visit
http:// offices.usda.gov.
Direct Loans
FSA offers direct farm ownership and direct farm operating loans to
producers who want to establish, maintain or strengthen their farm
or ranch. FSA loan officers process, approve and service direct
loans.
Direct farm operating loans can be used to purchase livestock and
feed, farm equipment, fuel, farm chemicals, insurance and other
costs including family living expenses. Operating loans can also be
used to finance minor improvements or repairs to buildings and to
refinance some farm-related debts, excluding real estate.
Direct farm ownership loans can be used to purchase farmland,
enlarge an existing farm, construct and repair buildings, and to
make farm improvements.
The maximum loan amount for direct farm ownership loans is $600,000
and the maximum loan amount for direct operating loans is $400,000
and a down payment is not required. Repayment terms vary depending
on the type of loan, collateral and the producer's ability to repay
the loan. Operating loans are normally repaid within seven years and
farm ownership loans are not to exceed 40 years.
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Please contact your local FSA
office for more information or to apply for a direct farm ownership
or operating loan.
Maintaining Good Credit History
Farm Service Agency (FSA) Farm Loan programs require that applicants
have a satisfactory credit history. A credit report is requested for
all FSA direct farm loan applicants. These reports are reviewed to
verify outstanding debts, if bills are paid timely and to determine
the impact on cash flow.
Information found on a
customer’s credit report is strictly confidential and is used only
as an aid in conducting FSA business.
Our farm loan staff will discuss options with you if you have an
unfavorable credit report and will provide a copy of your report. If
you dispute the accuracy of the information on the credit report, it
is up to you to contact the issuing credit report company to resolve
any errors or inaccuracies.
There are multiple ways to remedy an unfavorable credit score.
Make sure to pay bills on time. Setting up automatic payments or
automated reminders can be an effective way to remember payment due
dates.
Pay down existing debt.
Keep your credit card balances low.
Avoid suddenly opening or closing existing credit accounts.
FSA’s farm loan staff will guide you through the process, which may
require you to reapply for a loan after improving or correcting your
credit report.
For more information on FSA farm loan programs, visit
www.fsa.usda.gov.
Illinois Farm Service Agency
3500 Wabash Ave.
Springfield, IL 62711
Phone: 217-241-6600 ext.2
Fax: 855-800-1760
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Read all the articles in our
new
2019
Fall Farm Outlook Magazine
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