Beginning Farmers and Ranchers Loans

America's next generation of farmers and ranchers are supported through FSA's "Beginning Farmer" direct and guaranteed loan programs. Farm Ownership loans can provide access to land and capital. Operating loans can assist beginning farmers in becoming prosperous and competitive by helping to pay normal operating or family living expenses; open doors to new markets and marketing opportunities; assist with diversifying operations; and so much more. Through the Microloan program, beginning farmers and ranchers have an important source of financial assistance during the start-up years.

While FSA is fully committed to all farmers and ranchers, there is a special focus on the particular credit needs of farmers and ranchers who are in their first 10 years of operation. Each year, FSA targets a portion of its lending by setting aside a portion of all loan funds for financing beginning farmer and rancher operations. With the single exception of the Direct Farm Ownership Down Payment Loan, the Beginning Farmer classification is not related to a type of loan program; it references a specific, targeted funding source.

A beginning farmer is an individual or entity who:

• Has not operated a farm for more than 10 years;

• Substantially participates in the operation;

• For farm ownership loans, the applicant cannot own a farm greater than 30 percent of the average size farm in the county, at time of application.

• If the applicant is an entity, all members must be related by blood or marriage, and all entity members must be eligible beginning farmers. 

Terms dependent on loan type.

Farmers may apply for direct loans at their local FSA offices. Your local FSA offices are listed in the telephone directory under U.S. Government, Department of Agriculture or Farm Service Agency or find your local FSA office at farmers.gov.

For guaranteed loans, applicants must apply to a commercial lender who participates in the Guaranteed Loan Program. Contact your local FSA office for a list of participating lenders.

• Fact Sheet: Loans for Beginning Farmers and Ranchers

• Contact your local USDA Service Center for more info

Loan Types:

• Farm Ownership

• Farm Operating Loan

• Farm Microloan