Operating Loans may be used to purchase items such as livestock, farm equipment, feed, seed, fuel, farm chemicals, insurance, and other operating expenses. Operating Loans can also be used to pay for minor improvements to buildings, costs associated with land and water development, family subsistence, and to refinance debts under certain conditions.
Loan funds cannot be used to finance nonfarm enterprises, which include raising earthworms, exotic birds, tropical fish, dogs, or horses for non-farm purposes (racing, pleasure or show).
The limit on Direct Farm Operating Loans is $300,000.
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