Higher limits are now available for borrowers interested in farm loans from the Department of Agriculture. USDA announced last week the increase would help farmers purchase farms or cover operating expenses. The 2018 Farm Bill increased the amount that producers can borrow through direct and guaranteed loans available through USDA’s Farm Service Agency, and made changes to other loans, such as microloans and emergency loans.
FSA Administrator Richard Fordyce called farm loans “increasingly important” to farmers and ranchers “as natural disasters, trade disruptions and persistent pressure on commodity prices continue to impact agricultural operations.”
Key changes include increasing the Direct Operating Loan limit from $300,000 to $400,000. The Direct Farm Ownership Loan limit increased from $300,000 to $600,000, and the Guaranteed Farm Ownership Loan limit increased from $1.429 million to $1.75 million.
Producers can now receive both a $50,000 Farm Ownership Microloan and a $50,000 Operating Microloan. For more information on FSA farm loans click here.