Browse Ambrook’s collection of grants, loans, discounts, cost shares, easements, and insurance for animal purchase.

Locating a Lender:

You may click on one of the link below and select the desired state for a list of current FSA guaranteed lenders.
- Guaranteed Lender List By State, Effective March 31, 2020

Please note that this list is intended to get you started by providing very basic lender contact information. It may not contain all agricultural lenders in your area, and some lenders have multiple branches which are not specifically listed. Your local FSA Farm Loan Team can help you connect with a local lender, too, or provide you with a list of lenders known to make agricultural loans in your geographic location.

FSA’s Guaranteed Farm Loan Programs help&#x2004;family farmers and ranchers to obtain loans from USDA-approved commercial lenders at reasonable terms to buy farmland or finance agricultural production. FSA will guarantee farm loans through a commercial lender up to $1,776,000. Financial institutions receive additional loan business as well as benefit from the safety net the FSA provides by guaranteeing farm loans up to 95 percent against possible financial loss of principal and interest.


**Guaranteed versus Direct Farm Loans:**


With a guaranteed farm loan, the lender is FSA's customer, not the loan applicant. Guaranteed loans are the property and responsibility of the lender. The lender and loan applicant complete the Application for Guarantee and submit it to the FSA Service Center in their lending area. The Service Center works with the commercial lender to process the guarantee. The Farm Loan Officer reviews the application for applicant eligibility, repayment ability, adequacy of collateral, and compliance with other regulations, and if the applicant meets those requirements, the request is approved. The Service Center issues the lender a conditional commitment outlining the terms of the loan guarantee and indicating that the loan may be closed. The lender closes the loan and advances funds to the applicant, after which the Service Center staff issues the guarantee. The lender makes the loan and services it to conclusion. In the event the lender suffers a loss, FSA will reimburse the lender according to the terms and conditions specified in the guarantee.

A direct loan is funded directly by the Agency. The money used for direct loans comes from annual Congressional appropriations received as part of the USDA budget. The Agency is responsible for making and servicing the loan.


**Types of Guaranteed Farm Loans:**


- **FARM OWNERSHIP** loans may be used to purchase farmland, construct or repair buildings and other fixtures, develop farmland to promote soil and water conservation, or to refinance debt.

- **FARM OPERATING** loans may be used to purchase livestock, farm equipment, feed, seed, fuel, farm chemicals, insurance, and other operating expenses. Operating loans also may be used to pay for minor improvements to buildings, costs associated with land and water development, family living expenses, and to refinance debt under certain conditions. These loans may be structured as term loans or lines of credit depending upon the purpose and intended term of the loan.

- The **_EZ GUARANTEE_** Program is available for smaller loans. This program provides a simplified Guaranteed Loan application process to help small, new or underserved family farmers with early financial assistance. The EZ Guarantee is available for loan applications up to $100,000 for farm operating or farm ownership purposes. Streamlined financial underwriting is available for these loans, allowing all approved lenders to analyze the request in the same manner in which they would analyze a nonguaranteed loan request of the same size and type. All existing eligibility, loan purpose, security, and other requirements remain the same.



FSA’s Guaranteed Farm Loan Programs help family farmers and ranchers to obtain loans from USDA-approved commercial lenders at reasonable terms to buy farmland or finance agricultural production. FSA will guarantee farm loans through a commercial lender up to $1,776,000. Financial institutions receive additional loan business as well as benefit from the safety net the FSA provides by guaranteeing farm loans up to 95 percent against possible financial loss of principal and interest.

Guaranteed versus Direct Farm Loans:

With a guaranteed farm loan, the lender is FSA's customer, not the loan applicant. Guaranteed loans are the property and responsibility of the lender. The lender and loan applicant complete the Application for Guarantee and submit it to the FSA Service Center in their lending area. The Service Center works with the commercial lender to process the guarantee. The Farm Loan Officer reviews the application for applicant eligibility, repayment ability, adequacy of collateral, and compliance with other regulations, and if the applicant meets those requirements, the request is approved. The Service Center issues the lender a conditional commitment outlining the terms of the loan guarantee and indicating that the loan may be closed. The lender closes the loan and advances funds to the applicant, after which the Service Center staff issues the guarantee. The lender makes the loan and services it to conclusion. In the event the lender suffers a loss, FSA will reimburse the lender according to the terms and conditions specified in the guarantee.
A direct loan is funded directly by the Agency. The money used for direct loans comes from annual Congressional appropriations received as part of the USDA budget. The Agency is responsible for making and servicing the loan.

Types of Guaranteed Farm Loans:

- FARM OWNERSHIP loans may be used to purchase farmland, construct or repair buildings and other fixtures, develop farmland to promote soil and water conservation, or to refinance debt.
- FARM OPERATING loans may be used to purchase livestock, farm equipment, feed, seed, fuel, farm chemicals, insurance, and other operating expenses. Operating loans also may be used to pay for minor improvements to buildings, costs associated with land and water development, family living expenses, and to refinance debt under certain conditions. These loans may be structured as term loans or lines of credit depending upon the purpose and intended term of the loan.
- The EZ GUARANTEE Program is available for smaller loans. This program provides a simplified Guaranteed Loan application process to help small, new or underserved family farmers with early financial assistance. The EZ Guarantee is available for loan applications up to $100,000 for farm operating or farm ownership purposes. Streamlined financial underwriting is available for these loans, allowing all approved lenders to analyze the request in the same manner in which they would analyze a nonguaranteed loan request of the same size and type. All existing eligibility, loan purpose, security, and other requirements remain the same.

Qualifications:

To qualify for an FSA Guarantee, a loan applicant must:
- Be a citizen of the United States (or legal resident alien), which includes Puerto Rico, the U.S. Virgin Islands, Guam, American Samoa, and certain former Pacific Trust Territories
- Have an acceptable credit history as determined by the lender
- Have the legal capacity to incur responsibility for the loan obligation
- Be unable to obtain a loan without an FSA guarantee
- Not have caused FSA a financial loss by receiving debt forgiveness on more than 3 occasions on or prior to April 4, 1996, or any occasion after April 4, 1996, on either an FSA direct or guarantee loan
- Be the owner-operator or tenant-operator of a family farm after the loan is closed. For an Operating loan, the producer must be the operator of a family farm after the loan is closed. For a Farm Ownership loan, the producer also needs to own the farm
- Not be delinquent on any Federal debt.

Conservation Loan applicants do not have to meet the "family farm" definition nor do they have to be unable to obtain a loan without an FSA guarantee. All other eligibility requirements must be met.


A payment that must be returned to the provider following specified terms of repayment and interest rate.

Loan

- National Agricultural Library Farm Business Overview
- U.S. Small Business Administration Starting and Managing Your Business


Buildings

Construction

Fencing

Greenhouse

High Tunnel

HVAC

Irrigation

Lighting

Repairs

Storage

Reduced Tillage

Air Quality

Certification

Landscape

Soil Health

Wildlife & Pollinator Habitat

Business Plan

Cash Rent

Refinancing

Transition

Water Quality

Waterway Protection

Wetland Conservation

Feed

Fertilizer

Pest Management

Seed

Certified Organic

Certified Grassfed

Cover Crops

Succession

Weeds

Historically Underserved

Infrastructure

Equipment

Water Management

Conservation

Regenerative

Carbon Capture

Inputs

Legal & Finance

Interest Rates:

The Guaranteed loan interest rate and payment terms are negotiated between the lender and the applicant and may not exceed the maximum rates established by FSA.

Repayment Terms:

Repayment terms vary according to the type of loan made, the collateral securing the loan, and the producer's ability to repay. Operating Loans are normally repaid within 7 years and Farm Ownership loans cannot exceed 40 years. Operating Lines of Credit may be advanced for up to five years and all advances must be repaid within 7 years of the date of the loan guarantee.

Loan applications may be obtained from any Agricultural Loan Division Office. Loan Officers are available to provide assistance and guidance on the loan process. In order to be eligible for a direct loan, applicants must be denied credit from two lenders, which include banks, savings and loan associations, credit unions, mortgage loan companies, the Farm Credit System and/or the U.S. Department of Agriculture.

A private lender may pursue a participation loan or insured loan on behalf of the applicant. Under these circumstances, the private lender will work in conjunction with the Division on the loan application.

As part of the application process, aspects such as repayment ability, collateral, capital, economic and/or environmental conditions, credit history, and other factors will be taken into consideration. Acceptable applications are presented to the Board of Agriculture for final approval, with the exception of Micro-loans, which may be approved by the Chairperson of the Board of Agriculture.

Prior to obtaining and completing the loan application, it is recommend that you meet with or call one of our loan officers. They are available to assist you in determining your eligibility for the loan program and to guide you through the application process.

Oahu Agricultural Loan Division Office

Hilo Agricultural Loan Division Office

Kona Civic Center

The Hawaii New Farmer Loans are part of the Hawaii&#x2004;Agricultural Loan Division.


The State of Hawaii, Department of Agriculture’s Agricultural Loan Division administers the Agricultural Loan Program and the Aquaculture Loan Program. The intent of the programs is to help promote agricultural and aquacultural development of the State by providing credit at reasonable rates and terms to qualifying individuals or entities. Through the establishment of a revolving loan fund, credit is made available by supplementing private lender sector loan funds or by providing direct funding.


Considered a “lender of last resort”, the program is not intended to compete with private sector lenders. Prospective applicants must inquire with and be denied credit from private sector lenders prior to filling an application. In addition, prospective applicants must fulfill applicable eligibility requirements. Applicants that are not able to obtain denials from the private lending sector may inquire with the private lender on the possibility of utilizing the [insured/guaranty and/or participation loan facilities.](https://hdoa.hawaii.gov/agl/home/guaranteedparticipation-loans/)



The Hawaii New Farmer Loans are part of the Hawaii Agricultural Loan Division.

The State of Hawaii, Department of Agriculture’s Agricultural Loan Division administers the Agricultural Loan Program and the Aquaculture Loan Program. The intent of the programs is to help promote agricultural and aquacultural development of the State by providing credit at reasonable rates and terms to qualifying individuals or entities. Through the establishment of a revolving loan fund, credit is made available by supplementing private lender sector loan funds or by providing direct funding.

Considered a “lender of last resort”, the program is not intended to compete with private sector lenders. Prospective applicants must inquire with and be denied credit from private sector lenders prior to filling an application. In addition, prospective applicants must fulfill applicable eligibility requirements. Applicants that are not able to obtain denials from the private lending sector may inquire with the private lender on the possibility of utilizing the insured/guaranty and/or participation loan facilities.

A New Farmer is:
- A citizen of the United States who has resided in Hawaii for the preceding three years, or any permanent resident alien who has resided in Hawaii for the preceding three years; and
- A person who has successfully earned a degree in agriculture from an accredited university or community college; or
- A person displaced from employment in an agricultural production enterprise; or
- A person with two years experience as a part-time farmer; or
- A farm laborer or tenant, or a person who by reason of ability, experience and training are likely to successfully operate a farm.
- Certain restrictions may apply.

New Farmer Loans are for applicants who intend to farm full-time. A full-time farmer is a person who devotes most of their time to farming or derives most of their income from farming operations. A down payment or equity contribution equal to 15% of the total project cost is required from the applicant.

- Micro Loan Application
- Personal Financial Statement
- Expense Projection Sheet
- Income Assumptions
- Monthly Cash Flow Projections
- Food Manufacturing Income Assumptions


Distribution

Diversification

Events

Trade Show

Training

Trade Relief

Labor

Loan Rate and Amount:
- Interest Rates:  6% or 1.5% below the prime rate whichever is less with an interest rate floor of 3%. Rates are fixed at time of loan approval.
- Amount: $250,000 (see Note)

Note: Maximum loan amount of $250,000 may be used for a Farm Ownership and Improvement loan or a Farm Operating loan, or a combination of both types of loans.

Farm Ownership and Improvement Loans:
- Purpose: Purchase or improvement of farmland; construction, or improvement of essential farm buildings; liquidation of indebtedness for the foregoing purposes.
- Maximum Term: 40 years

Farm Operating Loans:
- Purpose: Purchase of farm equipment and livestock; payment of production and marketing expenses including materials, labor, and services; payment of living expenses; liquidation of indebtedness incurred for the foregoing purposes.
- Maximum Term: 10 years

Micro-Loans are also available for New Farmers, however, theses loans are restricted to operating loan purposes only. The maximum loan amount is $25,000 and the maximum term is 10 years. The application process minimizes paperwork and the loan approval process is expedited.

Loan applications may be obtained from any Agricultural Loan Division Office. Loan Officers are available to provide assistance and guidance on the loan process. In order to be eligible for a direct loan, applicants must be denied credit from two lenders, which include banks, savings and loan associations, credit unions, mortgage loan companies, the Farm Credit System and/or the U.S. Department of Agriculture.

As part of the application process, aspects such as repayment ability, collateral, capital, economic and/or environmental conditions, and historic performance will be taken into consideration. Acceptable applications may be approved by the Chairperson of the Board of Agriculture.

Prior to obtaining and completing the loan application, it is recommend that you meet with or call one of our loan officers. They are available to assist you in determining your eligibility for the loan program and to guide you through the application process.

The Hawaii Part-Time Farmer Loan is part of the Hawaii&#x2004;Agricultural Loan Division.


The State of Hawaii, Department of Agriculture’s Agricultural Loan Division administers the Agricultural Loan Program and the Aquaculture Loan Program. The intent of the programs is to help promote agricultural and aquacultural development of the State by providing credit at reasonable rates and terms to qualifying individuals or entities. Through the establishment of a revolving loan fund, credit is made available by supplementing private lender sector loan funds or by providing direct funding.


Considered a “lender of last resort”, the program is not intended to compete with private sector lenders. Prospective applicants must inquire with and be denied credit from private sector lenders prior to filling an application. In addition, prospective applicants must fulfill applicable eligibility requirements. Applicants that are not able to obtain denials from the private lending sector may inquire with the private lender on the possibility of utilizing the [insured/guaranty and/or participation loan facilities.](https://hdoa.hawaii.gov/agl/home/guaranteedparticipation-loans/)



The Hawaii Part-Time Farmer Loan is part of the Hawaii Agricultural Loan Division.

The State of Hawaii, Department of Agriculture’s Agricultural Loan Division administers the Agricultural Loan Program and the Aquaculture Loan Program. The intent of the programs is to help promote agricultural and aquacultural development of the State by providing credit at reasonable rates and terms to qualifying individuals or entities. Through the establishment of a revolving loan fund, credit is made available by supplementing private lender sector loan funds or by providing direct funding.

Considered a “lender of last resort”, the program is not intended to compete with private sector lenders. Prospective applicants must inquire with and be denied credit from private sector lenders prior to filling an application. In addition, prospective applicants must fulfill applicable eligibility requirements. Applicants that are not able to obtain denials from the private lending sector may inquire with the private lender on the possibility of utilizing the insured/guaranty and/or participation loan facilities.

A Part-Time Farmer is a person of proven farming ability who:
- Is a citizen of the United States who has resided in the State of Hawaii for the preceding three years, or any permanent resident alien who has resided in the State of Hawaii for the preceding three years; and
- Has been operating the person’s own farm for at least two years on land owned by the person in fee or on land rented or leased from others; and
- Is presently devoting a portion of the person’s time to farming; and
- Derives between twenty-five to fifty per cent of the person’s net cash income from direct participation in farming in its broadest sense; and
- Is a sound credit risk with the ability to repay the money borrowed; and
- Is willing to carry out recommended farm management practices.

Loan Rate and Amount
- Interest Rate: Fixed at 1% below the prime rate or at 7-1/2% per annum whichever is less. The prime rate is set twice a year, on January 1st and July 1st of each year.
- Amount: $25,000

Purposes:
- The purchase, construction, and improvement of farm production and/or growing structures; and
- The purchase of farm equipment and/or livestock; and
- The payment of production and marketing expenses, including materials, labor, and services.

Maximum Term: 
10 years

Restrictions: 
The liquidation of indebtedness incurred for any of the above purposes and for living expenses shall not be authorized purposes.

Loan applications may be obtained from any Agricultural Loan Division Office. Loan Officers are available to provide assistance and guidance on the loan process. In order to be eligible for a direct loan, applicants must be denied credit from two lenders, which include banks, savings and loan associations, credit unions, mortgage loan companies, the Farm Credit System, and/or the U.S. Department of Agriculture.

A private lender may pursue a participation loan or insured/guaranty loan on behalf of the applicant. Under these circumstances, the private lender will work in conjunction with the Division on the loan application.

As part of the application process, aspects such as repayment ability, collateral, and credit history, economic and environmental conditions, and historic performance will be taken into consideration. Acceptable applications are presented to the Board of Agriculture for final approval, with the exception of Micro-loans, which may be approved by the Chairperson of the Board of Agriculture.

Prior to obtaining and completing the loan application, it is recommend that you meet with or call one of your local loan officers. They are available to assist you in determining your eligibility for the loan program and to guide you through the application process.

The Hawaii Qualified Farmer Loan is part of the Hawaii&#x2004;Agricultural Loan Division.


The State of Hawaii, Department of Agriculture’s Agricultural Loan Division administers the Agricultural Loan Program and the Aquaculture Loan Program. The intent of the programs is to help promote agricultural and aquacultural development of the State by providing credit at reasonable rates and terms to qualifying individuals or entities. Through the establishment of a revolving loan fund, credit is made available by supplementing private lender sector loan funds or by providing direct funding.


Considered a “lender of last resort”, the program is not intended to compete with private sector lenders. Prospective applicants must inquire with and be denied credit from private sector lenders prior to filling an application. In addition, prospective applicants must fulfill applicable eligibility requirements. Applicants that are not able to obtain denials from the private lending sector may inquire with the private lender on the possibility of utilizing the [insured/guaranty and/or participation loan facilities.](https://hdoa.hawaii.gov/agl/home/guaranteedparticipation-loans/)



The Hawaii Qualified Farmer Loan is part of the Hawaii Agricultural Loan Division.

The State of Hawaii, Department of Agriculture’s Agricultural Loan Division administers the Agricultural Loan Program and the Aquaculture Loan Program. The intent of the programs is to help promote agricultural and aquacultural development of the State by providing credit at reasonable rates and terms to qualifying individuals or entities. Through the establishment of a revolving loan fund, credit is made available by supplementing private lender sector loan funds or by providing direct funding.

Considered a “lender of last resort”, the program is not intended to compete with private sector lenders. Prospective applicants must inquire with and be denied credit from private sector lenders prior to filling an application. In addition, prospective applicants must fulfill applicable eligibility requirements. Applicants that are not able to obtain denials from the private lending sector may inquire with the private lender on the possibility of utilizing the insured/guaranty and/or participation loan facilities.

A Qualified Farmer is:
- A citizen of the United States who has resided in Hawaii for the preceding three years, or any permanent resident alien who has resided in Hawaii for the preceding three years; and
- A person of proven farming ability who has operated their own farm for two or more years; and
- A person who devotes most of their time or derives most of their net income from the farming operation.

Sole proprietors, partnerships, corporations, and cooperatives are among the legal forms of businesses eligible to apply for a loan. Other forms of businesses may also be eligible for other loan facilities.
- An eligible sole proprietor is one who qualifies individually by meeting the requirements listed above.
- Eligible partnerships are controlled by at least seventy-five percent by persons who qualify individually.
- Eligible corporations are those where at least seventy-five percent of the stockholders and directors qualify individually.
- Eligible cooperatives shall have a majority of its board of directors and a majority of its membership qualifying individually and shall be engaged in marketing, purchasing, and processing, and providing of farm business services.

Local Food

Coronavirus

Trees

Weather

Wildfire

Farmers Market

Drought

Flood

Hurricane

Tornado

Emergency

1. Loan amount shall not exceed eighty-five per cent of the value of the security offered and cannot be made on un-surveyed land.
2. The Micro-Loan application process minimizes paperwork and the loan processing procedure is expedited.
3. Facility loans require a down payment or equity contribution of 15% and cannot exceed 85% of the value of the security offered.
4. Interest rates are fixed at 1% below the prime rate or 7-1/2% per annum whichever is less. The prime rate is set twice a year, on January 1st and July 1st of each year.

Emergency Loans are available to provide relief and rehabilitation due to environmental disasters, disease epidemics, and other economic emergencies. Emergency Loans are activated by declaration of a disaster by the Governor and are at an interest rate not less than 3% per annum. The Board of Agriculture determines the loan amount and terms. Qualified Farmers affected by State eradication programs may be eligible for a Farm Operating Loan at an interest rate of 3% to rehabilitate their farm operation. Soil and Water Conservation Loans are also available for water development and conservation purposes.

Farm Ownership and Improvement loans are for the purchase or improvement of farmland; construction, or improvement of essential farm buildings; liquidation of indebtedness of the foregoing purposes.

Farm Operating Micro-Loans are for the purchase of farm equipment and livestock; payment of production and marketing expenses including materials, labor, and services; payment of living expenses; liquidation of indebtedness incurred for the foregoing purposes.

Apply online here. 
Applicants will need to register for an account within the microgrants system. Note that this is NOT connected to a Livestock Conservancy membership account. This is a new account just for submitting grant applications.

Through the generous contributions of grantors and private individuals, The Livestock Conservancy has secured&#x2004;funding for emergency response assistance, on a case by case basis, to rare breed stewards and organizations. 

Occasionally The Livestock Conservancy is alerted to situations where genetically important animals (individuals or groups) are in danger of being lost to the breed due to environmental catastrophe, global crisis, or owner death or disability. In some of these situations it is appropriate for The Livestock Conservancy to provide assistance to assure that they are not lost to the breed. 



Through the generous contributions of grantors and private individuals, The Livestock Conservancy has secured funding for emergency response assistance, on a case by case basis, to rare breed stewards and organizations. 
Occasionally The Livestock Conservancy is alerted to situations where genetically important animals (individuals or groups) are in danger of being lost to the breed due to environmental catastrophe, global crisis, or owner death or disability. In some of these situations it is appropriate for The Livestock Conservancy to provide assistance to assure that they are not lost to the breed. 

These funds are for emergencies only and it will be up to the discretion of The Livestock Conservancy to determine if the project meets its conservation mission. Once an application is received, the genetic importance of the animal or group will be made through pedigree research or historical records, to be accomplished by The Livestock Conservancy staff or experts it designates. This will help determine whether rescue is necessary or whether the loss of the animals to the breed is not a threat to the genetic integrity of the breed. Project focus must be with breeds listed on the Conservation Priority List. 

A lump sum of money for a specific purpose that does not need to be paid back.

Grant

Livestock

Specialty Livestock

Cattle

Pigs

Poultry

Sheep

Alpacas

Beefalo

Bison

Buffalo

Caribou

Deer

Emus

Goats

Guinea Pigs

Llamas

Mink

Mohair

Ostrich

Pheasants

Quail

Rabbits

Reindeer

Water Buffalo

Beef Cattle

Dairy Cattle

Feeder Cattle

Slaughter Cattle

Calves

Heifers

Steers

Bulls

Barrows

Boars

Feeder Pigs

Hogs

Sows

Chickens

Cornish Hens

Ducks

Geese

Turkey

Ewes

Lambs

Rams

Bison Calf

Bison Meat

Bucks

Nannies

Slaughter Goats

Beef Bottom Round

Beef Brisket

Beef Chuck Roast

Beef Eye Round

Beef Flank Steak

Beef Flat Iron Steak

Beef Heart

Beef Liver

Beef London Broil

Beef NY Strip Steak

Beef Oxtail

Beef Rib Steak

Beef Rump Roast

Beef Short Ribs

Beef Sirloin

Beef Sirloin Tip Roast

Beef Skirt Steak

Beef Soup Bones

Beef Stew Meat

Beef Tongue

Beef Top Round

Beef Whole Filet

Ground Beef

Broilers

Chicks

Fryers

Layers

Pullets

Roasters

Ducklings

Goslings

Poults

Toms

Ground Lamb

Lamb Chops

Lamb Heart

Lamb Leg

Lamb Liver

Lamb Shank

Lamb Shoulder

Lamb Stew Meat

Disaster Relief

Funds may be used for purchase of animals, transportation, short term housing, and in some cases short term feed, veterinary care, and infrastructure. Awards will typically be in the range of $500 - $1,000 per application and at the discretion of The Livestock Conservancy.

It recommended that you call and make an appointment with your nearest Farm Loan Officer or Farm Loan Manager. Agency officials are required to:
- Help loan applicants complete FSA forms and gather information necessary for a complete application;
- Explain the application procedure, process, and the requirements for a complete application;
- Assist loan applicants in completing FSA forms and identifying sources of information needed for a complete application, if assistance is requested;
- Inform loan applicants of other technical assistance providers who may be of assistance at minimal or no charge. Some examples include, and are not limited to, the Cooperative Extension Service, non-profit organizations and institutions, the Intertribal Agriculture Council, and other similar organizations; and
- Advise applicants of alternatives that will help overcome any possible barriers to being determined eligible for an FSA loan.

Suggestions for First Meeting with FSA
- Have a general idea of what it is you want to do and be able to identify your goals. What type of operation do you have or want to have? What do you need to operate that farm or ranch? How will you market your product(s)? How much do you need? What are your projections?
- Good recordkeeping is very important. If you do not have your records organized, it is a good idea to try and put all your income and expenses into an understandable format. It does not have to be fancy. Also, what is happening inside the household is just as important as your business needs. Expenses such as food, clothing, mortgage or rent, insurance, taxes, medical costs, credit card payments, education expenses, and other consumer debt are part of the farm plan calculations. Know your costs. Bring your records with you.
- Remember to bring any financial records, which can include tax returns, for the most recent production cycle to assist in projecting the cash flow for your loan proposal. If you need to rely on off-farm income to repay the loan, bring in your last few pay stubs.
- Bring copies of any written leases to the office with you if you are leasing land or equipment.
- It is a prudent idea to check your credit report before applying for a loan. This allows you to spot any errors or research events that may have negatively impacted your credit. The Fair Credit Reporting Act (FCRA) requires each of the nationwide credit reporting companies—Equifax, Experian, and TransUnion—to provide you with a free copy of your credit report, at your request, once every 12 months. The FCRA promotes the accuracy and privacy of information in the files of the nation's credit reporting companies. The Federal Trade Commission (FTC), the nation's consumer protection agency, enforces the FCRA with respect to credit reporting companies.
- Many answers can be found in the booklet, "Your Guide to FSA Farm Loans.

The focus of Microloans is on the financing needs of small, beginning farmer, niche and non-traditional farm operations, such as truck farms, farms participating in direct marketing and sales such as farmers’ markets, CSA’s (Community Supported Agriculture), restaurants and grocery stores, or those using hydroponic, aquaponic, organic and vertical growing methods.


**Direct farm ownership microloans:**

- Make a down payment on a farm

- Build, repair, or improve farm buildings, service buildings, farm dwelling

- Soil and water conservation&#x2004;projects

- May be used as a downpayment farm ownership loan

- May be used in joint financing


**Direct farm operating microloans:**

- Essential tools

- Fencing and trellising

- Hoop houses

- Bees and bee equipment

- Milking and pasteurization equipment

- Maple sugar shack and processing equipment

- Livestock, seed, fertilizer, utilities, land rents, family living expenses, and other materials essential to the operation

- Irrigation

- GAP (Good Agricultural Practices), GHP (Good Handling Practices), and organic certification costs

- Marketing and distribution costs, including those associated with selling through farmers' markets and community supported agriculture operations

- Pay for qualifying OSHA compliance standards (federal or state)



The focus of Microloans is on the financing needs of small, beginning farmer, niche and non-traditional farm operations, such as truck farms, farms participating in direct marketing and sales such as farmers’ markets, CSA’s (Community Supported Agriculture), restaurants and grocery stores, or those using hydroponic, aquaponic, organic and vertical growing methods.

Direct farm ownership microloans:
- Make a down payment on a farm
- Build, repair, or improve farm buildings, service buildings, farm dwelling
- Soil and water conservation projects
- May be used as a downpayment farm ownership loan
- May be used in joint financing

Direct farm operating microloans:
- Essential tools
- Fencing and trellising
- Hoop houses
- Bees and bee equipment
- Milking and pasteurization equipment
- Maple sugar shack and processing equipment
- Livestock, seed, fertilizer, utilities, land rents, family living expenses, and other materials essential to the operation
- Irrigation
- GAP (Good Agricultural Practices), GHP (Good Handling Practices), and organic certification costs
- Marketing and distribution costs, including those associated with selling through farmers' markets and community supported agriculture operations
- Pay for qualifying OSHA compliance standards (federal or state)

As with the regular Operating loan program, traditional and non-traditional family farms and ranches may be eligible for Microloan financing.

General eligibility requirements include:
- Must not have Federal or State conviction(s) for planting, cultivating, growing, producing, harvesting, storing, trafficking, or possession of controlled substances
- Have the legal capacity to incur the loan obligation
- Be able to show an acceptable credit history
- Is a citizen, non-citizen national or legal resident alien of the United States, including Puerto Rico, the U.S. Virgin Islands, Guam, American Samoa, and certain former Pacific Trust Territories
- Have no previous debt forgiveness by the Agency, including a guarantee loan loss payment
- Be unable to obtain sufficient credit elsewhere, with or without an FSA loan guarantee
- Not be delinquent on any Federal debt, other than IRS tax debt, at the time of loan closing
- Not be ineligible due to disqualification resulting from Federal Crop Insurance violation

- Application Instructions
- Fact Sheet: Microloans
- Direct Loan Making Handbook 3-FLP
- Farm Answers Library
- National Agrability Project
- National Organic Program
- Natural Resources and Conservation Service Resources for Small Farms
- USDA Information for Veterans
- Farmers.gov

Nutrition & Food Safety

Nutrient Management

Marketing

Research

Compliance

Food Systems

Microloan versus FSA's "regular" loan:

Direct Farm Ownership Microloans:
- No appraisal needed
- Verification of non-farm income unnecessary unless required for repayment
- Successful repayment of an FSA Youth loan may be used towards the required 3 years of management experience

Direct Farm Operating Microloans:
- The Microloan program allows for situations where production yield history or reporting is impractical, not relevant to the proposal submitted, or is not available.
- Modified farm managerial experience requirements accommodate smaller farm operations, beginning farmers, and those with no farm management experience. Small business experience plus any farm experience, along with a self-guided apprenticeship, is a way to meet the farm management requirement.
- Rural Youth loan recipients with a successful repayment history, or youth who have participated in an agriculture-related organization, can meet the modified managerial ability requirements with those experiences.

For the direct ownership microloan, the maximum term is 25 years.

For the direct operating microloan, the repayment period will vary depending upon the purpose of the loan. General operating and family living expenses are due within 12 months or when the agricultural commodities sell. For larger purchases such as equipment or livestock, the term will not exceed 7 years.

Download the Rural Assistance Loan Application Form (pdf format) to get started. A complete application must include the following:
- Completed Application Form
- Review and signature from local committee
- Copies of the past two year’s federal income tax returns
- A $35.00 non-refundable application fee payable to the Montana Department of Agriculture

Completed applications should be mailed to:
Montana Department of Agriculture
Agricultural Finance Program
P. O. Box 200201
Helena, Montana 59620-0201. 

Additional information or documentation may be required at the discretion of the department. Final loan approval or denial will be determined by the Department of Agriculture Loan Committee.


Walt Anseth

The **Rural&#x2004;Assistance Loan Program** provides loans to producers with modest financial investments in agriculture. These loans finance agricultural enterprises to provide financial experience and assist in the economic growth and welfare of Montana agriculture. Rural Assistance Loans are available through the Agricultural Finance Program of the Montana Department of Agriculture.


Funds may be used to finance the following:

- Agricultural property, such as livestock and farm machinery;

- Agricultural improvements, such as barns or irrigation systems;

- Annual operating expenses; and

- Agricultural land.



The Rural Assistance Loan Program provides loans to producers with modest financial investments in agriculture. These loans finance agricultural enterprises to provide financial experience and assist in the economic growth and welfare of Montana agriculture. Rural Assistance Loans are available through the Agricultural Finance Program of the Montana Department of Agriculture.

Funds may be used to finance the following:
- Agricultural property, such as livestock and farm machinery;
- Agricultural improvements, such as barns or irrigation systems;
- Annual operating expenses; and
- Agricultural land.

Applicants must be at least 18 years of age and residents of Montana at the time of application. Loans are available to persons who are unable to qualify for financing from commercial lenders. However, the activity for which the loan is requested and the financial position of the applicant must show a positive cash flow and net worth.

The total value of an applicant's net worth, including those of spouse and minor children, cannot exceed $450,000.

- Montana Rural Assistance Loan Program: Loan Terms
- Montana Rural Assistance Loan Program: Additional Terms
- Montana Rural Assistance Loan Program: Application


Upon approval of a Rural Assistance Loan application, borrowers must agree to certain requirements:
- Cattle or horses that are used as collateral must be branded with a brand registered with the Montana Department of Livestock.
- Good records of production and expenses are required.
- Borrowers will pay the fees required to file, continue, or release financing statements, brand liens, and mortgages.
- Applicants may be required to establish a joint checking account with the Montana Department of Agriculture. Loan funds would be deposited in this account and used for financial transactions related to the loan.
- Comprehensive insurance or crop insurance may be required on secured or mortgaged property.
- For real estate loans, the Department of Agriculture requires a first mortgage position and title insurance in the name of the Department.
- A qualified appraisal may be required to determine the value of assets or collateral property.

List of Agricultural Funding for Animal Purchase