PURPOSE OF
THE LOAN
PROGRAM:
1.To
preserve interest in Nevada’s agricultural future by
helping the youth of Nevada finance agricultural
projects.
2.To
provide financial experience and training to our youth
through agricultural loans and the loan process.
ELIGIBILITY (who
can apply):
Active members of the
Future Farmers of America, 4-H, Future Homemakers of
America or any other recognized farm youth organization
may be eligible for this program. The Department of
Agriculture may also make direct loans to prospective
Borrower’s unable to participate as a member of a farm
youth organization. Parents or guardians must be
willing to cooperate with the prospective Borrower and
ample facilities must be available to provide for the
project. Applicants must be between the ages of nine
(9) and twenty-one (21); a Nevada resident and a citizen of
the United States. Funds must be unavailable to
the applicant from other sources at reasonable rates and
terms.
Use of a
Jr. Ag. Loan:
Applicant must develop a
marketable agricultural project that, through production
and marketing of an agricultural commodity, can pay back
the loan through its earnings. Applicant must have a
co-signer, parent/guardian, or other that will guarantee
payment of the loan and provide required facilities for
the project. The project must produce income to repay
the loan and can be used to buy animals, equipment or
supplies; buy, rent or repair needed tools and
equipment; or pay operating expenses for the project.
Funds can be utilized for a 4-H project or other
educational agricultural project with income producing
capability.
Things to Know about
Jr. Ag. LOANS:
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The amount of each loan shall depend upon
each individual’s proposed project. Individuals may
borrow up to ninety percent (90%) of the total funds
required for the project.
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Loan repayment may be scheduled for one to
five years depending upon the project. The maximum
duration of any loan is five (5) years.
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There is no minimum loan requirement,
however; the Nevada Department of Agriculture reserves
the right to determine the educational and economic
viability of each project.
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Funds for Jr. Ag. Loans are varied and
limited, therefore; applicant projects shall be
evaluated and funded on a “first-come, first-served”
basis depending upon availability of loan funds during
the fiscal year from July 1 – June 30. Re-payment of
your Ag. .Loan is essential to continuation of this
program.
MAXIMUM
AMOUNT OF LOAN:
$10,000
per individual
Final loan approval shall
be made by the Director of the Nevada Department of
Agriculture.
INTEREST RATE:
Interest
Rate shall not exceed the reasonable market rate per
annum for any loan. The rate will be established by the
Director of the Nevada Department of Agriculture on July
1 of each year and remain the same until the following
June 30. The interest rate charged at the onset of the
loan will remain constant through the life of the loan.
At present, the interest rate is six percent (6%) per
annum.
LOAN COMMITTEE:
Each
project shall be administered, supervised and serviced
through the following entities:
Loan
Officer: Employee of the Nevada Department of
Agriculture responsible for the Junior Agricultural Loan
Program.
Project Supervisor: Local County Extension
Agent, FFA advisor, 4-H leader or other local individual
approved by the Loan Officer to assist in determining
the Borrower’s and projects loan eligibility and to
direct and assist the Borrower and Co-signer through the
life of the loan.
Local Loan Committee: Appointed by
the Loan Officer of the Nevada Department of Agriculture
(consisting of members of local extension, education and
agricultural lending institutions), to assist the Loan
Officer in assessing the eligibility of the applicants
and viability of proposed projects. Also, to provide recommendations
concerning placement and servicing of a loan.
TERMS & CONDITIONS:
If the
loan is approved, the Borrower and co-signer must agree
to the following terms & conditions:
-
Borrower
must follow the recommendations of the local reviewing
committee to the best of their ability;
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Borrower will identify all livestock by brand (registered to
Borrower with the Nevada Department of Agriculture),
mark or registration number (tag, tattoo, microchip,
etc.) or alternative method approved by the Loan officer
and Project Supervisor.
-
Borrower will cooperate fully, at all times, with their Project
Supervisor in the best management practices, including
record keeping.
-
Borrower will allow Project Supervisor and representatives of the
Nevada Department of Agriculture to inspect and observe
the project at any time during reasonable business
hours.
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In the event the mortgaged property is sold during the loan period
(extended to full repayment of any loan), the entire
remaining balance owed the Nevada Department of
Agriculture shall become immediately due and payable.
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Upon sale of any mortgaged property, their offspring or product,
the check or draft must be made payable jointly to the
Borrower and Nevada Department of Agriculture.
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Mortgaged property, their offspring or product, is to remain
physically located on the premises owned or occupied by
the Borrower and parent/guardian. Permission must be
obtained from the Loan Officer of the Nevada Department
of Agriculture to move the mortgaged property to another
ranch or location.
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Upon approval of a loan and issuance of a check to the Borrower, a
supervised dual signature bank account must be
established between the Borrower and the Project
Supervisor (acting representative for the Nevada
Department of Agriculture) for disbursement of the
funds.
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At the time of the Borrower’s annual payment, a written summary
report of the project shall be made to the Loan Officer
by the Borrower. A copy of the current year’s record
book shall be included with each annual report.
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Borrower and Co-signers shall consent to all terms and conditions
of the loan and sign all required forms as deemed
necessary by the Nevada Department of Agriculture. By
consenting to and signing all such forms, Borrower and
Co-signer are contractually bound by the terms and
conditions, and are fully liable for re-payment of the
loan and all accrued interest in total.
-
Loans will be secured by the Nevada Department of Agriculture
through liens (UCC filings with the Secretary of State)
on all livestock or commodities involved in the
project. Borrower is required to obtain insurance on
all project livestock and commodities.
Where and How to apply:
To
obtain additional information and application forms for
the Junior Agricultural Loan Program contact the Loan
Officer at the Carson City Office of the Nevada
Department of Agriculture or print the form below and
send the complete package to the
Loan Officer.
Forms
ADDITIONAL INFORMATION
Contact Us
Please contact the Department of Agriculture
350 Capitol Hill Ave
Reno, NV 89502
(775) 688-1180
Fax (775) 688-1178
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