If you’re looking to borrow money for a project on the farm, don’t overlook the Farm Service Agency. Tom Brandt is the Farm Loan Chief for Wisconsin FSA. He says there’s both an appetite to borrow and lend.
In the last few years, the primary loans have been for real estates. Ag lenders have been helpful with operating loans, but FSA has had to step in to help with the real estate side of things, Brandt says.
FSA offers both direct and guaranteed loans. Direct loans mean that farmers work directly with FSA officers. FSA has increased rates — 2.5 percent to 5 percent today. But it’s still lower than conventional lenders. Guaranteed loans allow farmers to work with their normal lender, but FSA helps find a guarantee to reduce the rate for the farmer.
Demand for FSA’s services have been down the past two years thanks to a strong economy and government assistance adding cash flow. Brandt expects call volumes to pick up because of the higher interest rates. He says ag lenders may refer farmers to FSA for loans.
Brandt says FSA has adequate funding where assisting with loans wouldn’t be a problem. All ag commodities are eligible for FSA’s financial services — farm ownership, term loans, and annual operating loans, for example.
The best way to get a hold of your local FSA office is to visit fsa.usda.gov. There’s also farmers.gov, which has a loan application tool to help walk you through your eligibility and loan limits.
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