Farm loans are provided to family-size farmers and ranchers who cannot obtain commercial credit from a bank, Farm Credit System institution, or other lenders. These loans can be used to purchase land, livestock, equipment, feed, seed, and supplies, and construct buildings or make farm improvements.
Beginning Farmer and Rancher loans were developed for individuals who have not previously operated a farm or ranch, or who have operated a farm or ranch for less than 10 consecutive years.
Downpayment Farm Ownership loans were developed to help beginning farmers and ranchers purchase a farm or ranch. These loans provide a way for retiring farmers to transfer their land to a future generation of farmers and ranchers.
Emergency loans were developed to help producers recover from production and physical losses due to drought, flooding, other natural disasters, or quarantine.
Farm Storage Facility loans were developed under the Commodity Credit Corporation (CCC) Charter Act to create loans for producers to build or upgrade farm storage and handling facilities.
Farm Operating loans may be used to purchase items such as livestock, farm equipment, feed, seed, fuel, farm chemicals, insurance, and other operating expenses. They can also be used to pay for minor improvements to buildings, costs associated with land and water development, family subsistence, and refinancing debts under certain conditions.
Youth loans are given to individual rural youths who desire to establish and operate income-producing projects of modest size in connection with their participation in 4-H clubs, Future Farmers of America, and similar organizations.
Nonrecourse Marketing Assistance loans and the Loan Deficiency Payment program provide producers interim financing at harvest time to meet cash flow needs without having to sell their commodities when market prices are typically at harvest-time lows.
Indian Land Acquisition loans enable Indian tribes to purchase privately held lands that lie within their reservations. Loan funds may be used to pay expenses incidental to the purchase of the land, but not for land development.
