Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

FSA Farm Loan Opportunities - Robert White

Robert White, USDA-Farm Service Agency

  • Login to see the comments

  • Be the first to like this

FSA Farm Loan Opportunities - Robert White

  1. 1. 1 USDA Farm Service Agency Women Managing the Farm 2017 Conference Our mission is to deliver timely, effective programs and services to America’s farmers and ranchers to support them in sustaining our Nation’s vibrant agricultural economy, as well as provide first-rate support for domestic and international food aid efforts.
  2. 2. 2 USDA FARM SERVICE AGENCY • Kansas FSA: – 96 County Offices in 105 Counties – Management Team • County Executive Director • Farm Loan Manager/Officer • Program Technicians • County Committee (Farmer Elected) • USDA Service Centers: • Farm Service Agency (FSA) • Natural Resources Conservation Service (NRCS) • Rural Development (RD)
  3. 3. 3 Fiscal Year 2016 Accomplishments • During FY 2016, Kansas funded 1,492 loan applications. In excess of $221 Million was provided in both Direct and Guaranteed loan programs. • Loans made increased more than $29 million over FY 2015, or a 15% increase. • The $221 Million loaned in FY 2016 equates to approximately $879,500 every working day. Fiscal Year: October 1, 2015 – September 30, 2016
  4. 4. 4 Fiscal Year 2016 Accomplishments Current Loan Portfolio $807 million: • 3,426 Direct borrowers with a total indebtedness of $496 million. • 987 Guaranteed borrowers with a total indebtedness of $311 million Fiscal Year: October 1, 2015 – September 30, 2016
  5. 5. 5 FARM LOAN PROGRAMS  Farm Loan Programs provide loans, loan guarantees, and business planning to eligible farmers, ranchers, and others to promote, build, and sustain family farms in support of a thriving agricultural economy. Who are our potential customers? • Beginning farmers and ranchers • Farmers whose needs may not be met by commercial credit • Multigenerational family farms • Socially disadvantaged farmers and ranchers * • Value added farming operations • Organic and specialty farmers • Farmers who have hit hard times and now require a safety net
  6. 6. Eligibility General Eligibility Requirements typically include: • Be an operator of a family farm; • Not be delinquent on Federal debt; • Have a satisfactory history of meeting credit obligations; • Has not caused the Agency a loss through debt forgiveness; • Must not have had a violation with Federal Crop Insurance; • Be a citizen of the United States, US non-citizen national, or a qualified alien under applicable Federal immigration laws; • Be within the time restrictions as to the number of years applicants can receive FSA assistance. • Have sufficient managerial ability to assure reasonable prospects of loan repayment; • For Direct Farm Ownership (FO) loans, applicants must have participated in the business operations of a farm or ranch for 3 years; 6
  7. 7. Guaranteed Loans FSA provides a guarantee of up to 95% to a commercial lender (such as a Bank or Farm Credit). Loan limit of $1,399,000. 7
  8. 8. Guaranteed Loans • Farm Ownership (FO) – Funds may be used for the purchase or improvement of real estate or refinancing. Loan terms are limited to 40 years or less. 8
  9. 9. Guaranteed Loans • Farm Ownership (FO) • Operating (OL) - Funds may be used to purchase machinery or breeding livestock, or for refinancing. Loan terms typically limited to 7 years. 9
  10. 10. Guaranteed Loans • Farm Ownership (FO) • Operating (OL) • Line of Credit (LOC) – Funds to be used for annual crop or livestock inputs. Maximum term of 5 years. 10
  11. 11. Guaranteed Loans • Farm Ownership (FO) • Operating (OL) • Line of Credit (LOC) • EZ Guarantee – Limited to $100,000, simplified application process for any of the above loan types and purposes. 11
  12. 12. Direct Loans Loans are made and serviced by FSA. 12
  13. 13. Direct Loans For FSA Farm Loan Program (FLP) direct loans: Eligibility includes a requirement that the Applicant be unable to obtain sufficient credit elsewhere at reasonable rates and terms. Examples: –Inadequate security margin –Limited cash flow –New operation –Recovering from a financial loss 13
  14. 14. Direct Loans Farm Ownership (FO) – Direct FO loans may include – Down Payment, 50/50, and 100%. 14
  15. 15. Down Payment FO Program • Required down payment of 5% • FSA’s interest rate is 1.5%, fixed • Max loan term of 20 years • FSA lends up to 45% of purchase price (FSA’s portion not more than $300,000) • 50% of financing from participating lender • Must be an Underserved Applicant or Beginning Farmer 15
  16. 16. 16 • Loans to Beginning Farmers & Ranchers – In addition to general eligibility requirements, a beginning farmer/rancher may qualify to purchase real estate with the following additional conditions: • Has not operated a farm for more than 10 years. • Does not own real farm property or who, directly or through interests in family farm entities owns real farm property, the aggregate acreage of which does not exceed 30% of the average acreage of the farms in the county where the property is located. • The average farm size will be based upon information obtained from the most recent Census of Agriculture. Information on average farm size by acres is available at the local FSA County Office. FARM LOAN PROGRAMS
  17. 17. 17 Definition of Underserved Applicant for Farm Loan Purposes: A group whose members have been subject to racial, ethnic, or gender prejudice because of their identity as members of the group without regard to their individual qualities. These groups consist of: Women American Indians Alaskan Natives Asians Hispanics Native Hawaiians or other Pacific Islanders Blacks or African Americans A certain percentage of farm loan program funding is targeted for Underserved Applicants. FARM LOAN PROGRAMS
  18. 18. 18
  19. 19. FO Participation (50/50) Loan • No minimum down payment required. • FSA loans 50%, participating lender 50%. • FSA loan rate of 2.5%, fixed for up to a 40 year term. • $300,000 loan limit for FSA’s portion. 19
  20. 20. FO 100% Loan • No minimum down payment required. • FSA loans up to 100%. • FSA loan rate of 4% (Feb. 2017) fixed for up to a 40 year term. • $300,000 loan limit. 20
  21. 21. Direct Loans • Farm Ownership (FO) • Operating (OL) – Funds may be used for annual inputs, or machinery and breeding livestock purchases. In some cases, for refinancing debts. A maximum term of 7 years, with amortizations up to 21 years. 2.875% interest rate (Feb. 2017) $300,000 loan limit. 21
  22. 22. Direct Loans • Farm Ownership (FO) • Operating (OL) • Microloans – Loans up to $50,000, reduced application requirements and potentially less security necessary. Either of the above loan types and purposes. 22
  23. 23.  Marketing and distribution expenses  Purchase of livestock  Minor farm improvements such as wells and coolers  Annual operating expenses such as seed, fertilizer, utilities and land rents  Loan amount limited to $50,000 23 ~ FSA Microloans can include ~  Initial start-up expenses; such as: hoop houses to extend the growing season  Essential tools or equipment needed for the operation  Irrigation equipment
  24. 24. Direct Loans • Farm Ownership (FO) • Operating (OL) • Microloans • Emergency (EM) – Actual Loss loan amounts are based on losses from a declared disaster. Interest rate of 3.875% as of Feb. 2017. $500,000 loan limit. 24
  25. 25. Direct Loans • Farm Ownership (FO) • Operating (OL) • Microloans • Emergency (EM) • Youth (YL) – For applicants 10 to 20 years old, participating in 4-H or FFA. 2.875% interest rate (Feb. 2017). $5,000 loan limit. 25
  26. 26. Farm Storage Facility Loans In addition to Farm Loan Program (FLP) loans, the FLP staff in Kansas administer Farm Storage Facility Loans (FSFL). The FSFL Program provides financing for producers to build or upgrade farm storage and handling facilities, as well as purchase of equipment. Qualified facilities include grain bins, hay barns and cold storage facilities. The current fixed rate for a seven year loan is 2.25% (Feb. 2017). Unlike FLP loans, eligible applicants may be able to obtain credit elsewhere. 26
  27. 27. Farm Service Agency, Farm Loan Programs Guaranteed Loans • Farm Ownership (FO) • Operating (OL) • Line of Credit (LOC) • EZ Guarantee Farm Storage Facility Loans Direct Loans • Farm Ownership (FO) • Operating (OL) • Microloans • Emergency (EM) • Youth (YL) 27
  28. 28. Farm Service Agency, Farm Loan Programs For current interest rates, additional information, or application materials see: http://www.fsa.usda.gov/programs-and- services/farm-loan-programs or contact your local FSA Farm Loan Team 28
  29. 29. Farm Service Agency, Farm Loan Programs 29
  30. 30. Contact Information Bob White, Farm Loan Chief Kansas FSA State Office 3600 Anderson Ave Manhattan, KS 66503 PH: 785-564-4759 Fax: 855-782-9610 robert.white@ks.usda.gov USDA is an equal opportunity provider, employer, and lender 31

×