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

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."

FSA's Direct Farm Operating Loans are a valuable resource to start, maintain and strengthen a farm or ranch. For new agricultural producers, FSA's Direct Farm Operating Loans provide an essential gateway into agricultural production by financing the cost of&#x2004;operating a farm. With a maximum loan amount of $400,000, all FSA Direct Operating Loans are financed and serviced by the Agency through [local Farm Loan Officers and Farm Loan Managers](https://www.fsa.usda.gov/state-offices/index). The [funding](https://www.fsa.usda.gov/programs-and-services/farm-loan-programs/funding/index) comes from Congressional appropriations as part of the USDA budget.


**Loan Purposes:**


Operating loans must be essential to the success of the farming operation and only for the following purposes:

- Costs associated with reorganizing a farm to improve profitability, for example:

    - purchase of equipment to convert from conventional to no-till production

    - change from stocker to cow-calf production

    - shifting from row crop to vegetable production

    - purchasing grain drying and storage equipment to facilitate better marketing

    - purchase shares in value-added processing and marketing cooperatives

- Purchase of livestock, including poultry

- Purchase farm equipment

- Farm operating expenses including, and not limited to:

    - feed

    - seed

    - fertilizer

    - pesticides

    - farm supplies

    - cash rent

    - family living expenses

    - initial processing of agricultural commodities, under certain circumstances

- Minor improvements or repairs to buildings

- Refinance certain farm-related debts, excluding real estate

- Land and water development, use, or conservation

- Loan closing and borrower training costs



FSA's Direct Farm Operating Loans are a valuable resource to start, maintain and strengthen a farm or ranch. For new agricultural producers, FSA's Direct Farm Operating Loans provide an essential gateway into agricultural production by financing the cost of operating a farm. With a maximum loan amount of $400,000, all FSA Direct Operating Loans are financed and serviced by the Agency through local Farm Loan Officers and Farm Loan Managers. The funding comes from Congressional appropriations as part of the USDA budget.

Loan Purposes:

Operating loans must be essential to the success of the farming operation and only for the following purposes:
- Costs associated with reorganizing a farm to improve profitability, for example:
    - purchase of equipment to convert from conventional to no-till production
    - change from stocker to cow-calf production
    - shifting from row crop to vegetable production
    - purchasing grain drying and storage equipment to facilitate better marketing
    - purchase shares in value-added processing and marketing cooperatives
- Purchase of livestock, including poultry
- Purchase farm equipment
- Farm operating expenses including, and not limited to:
    - feed
    - seed
    - fertilizer
    - pesticides
    - farm supplies
    - cash rent
    - family living expenses
    - initial processing of agricultural commodities, under certain circumstances
- Minor improvements or repairs to buildings
- Refinance certain farm-related debts, excluding real estate
- Land and water development, use, or conservation
- Loan closing and borrower training costs

There are 2 different types of qualifications which need to be met:
- Eligible farm enterprise
- General eligibility requirements

First, the operation must be an eligible farm enterprise. Operating loan funds cannot be used to finance nonfarm enterprises, such as exotic birds, tropical fish, dogs or horses used for non-farm purposes (racing, pleasure, show and boarding).

General eligibility requirements include:
- Not having Federal or State conviction(s) for planting, cultivating, growing, producing, harvesting, storing, trafficking, or possession of controlled substances
- The legal ability to accept responsibility for the loan obligation
- An acceptable credit history
- Be a United States 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
- No previous debt forgiveness by the Agency, including a guarantee loan loss payment
- Being unable to obtain sufficient credit elsewhere, with or without an FSA loan guarantee
- No delinquency on a Federal debt, other than IRS tax debt, at the time of loan closing
- Not being ineligible due to disqualification resulting from a Federal Crop Insurance violation
- Have sufficient managerial ability to assure a reasonable expectation of loan repayment

Explanation of "Managerial Ability":

Managerial ability is shown to the Agency through any combination of education, on-the-job training, and farm experience or by meeting just 1 of these criteria. The level of management ability required will depend on the complexity of the operation and the amount of the loan request. Every application is evaluated on a case-by-case basis.

Education:
- 4-year college degree or graduate degree in agricultural related field(s)
- 2-year college degree from a technical college in agricultural related field
- Successful completion of farm management curriculum offered by the Cooperative Extension Service, a community college, adult vocational agricultural program or Land Grant university
- Successful completion of a community-based, nationally-based, non-profit or similar farm workshop programs
- Vocational or general agriculture classes in high school in addition to working on a farm and participating in, and successfully complete agricultural projects in, 4-H, FFA, Tribal youth organizations, Grange Youth, or another agricultural affiliated club

On-The-Job Training:
- Working or recently worked as hired farm labor with management responsibilities (make day-to-day decisions)
- Completing or recently completed a farm mentorship, internship or apprenticeship program with an emphasis on management requirements and day-to-day farm decisions
- Participating or recently participated in urban or community-supported agriculture programs which incorporate basic agricultural training

Farm Experience:
- Owner, manager or operator of a farm business for at least 1 full production and marketing cycle within 5 years of the date of the loan application
- Employed as a migrant farm worker and elevated to leadership or foreperson position for at least 1 entire production and marketing cycle with responsibilities related to crop and field management, livestock health, breeding supervision, labor management or hiring, or general farm management
- Raised on a farm and had significant responsibility for day-to-day management decisions for at least 1 entire production and marketing cycle
- Obtained and successfully repaid at least 1 FSA Youth Loan

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

Loan

- Fact Sheet: Farm Loans Overview 
- Direct Loan Making Handbook 3-FLP 
- Farm Answers Library
- National Agrability Project
- USDA Veterans in Agriculture
- Farmers.gov

HVAC

Lighting

Repairs

Events

Certification

Distribution

Diversification

Weeds

Greenhouse

Buildings

Fencing

Construction

Storage

Cash Rent

Refinancing

Business Plan

Transition

Irrigation

Wetland Conservation

Waterway Protection

Water Quality

Landscape

High Tunnel

Air Quality

Wildlife and Pollinator Habitat

Certified Organic

Trade Relief

Succession

Certified Grassfed

Cover Crops

Reduced Tillage

Marketing

Inputs

Nutrient Management

Legal & Finance

Facilities

Equipment

Water Management

Labor

Local Food

Soil Health

Food Systems

Conservation

Regenerative

Carbon Capture

Maximum Loan Limitations:

The maximum loan amount for a Direct Farm Operating Loan is $400,000. There is no down payment requirement. 

Repayment Terms:

Direct Farm Operating loan repayment terms vary depending upon the purpose of the loan, the loan applicant's ability to pay, and when income is projected to be available. General operating and family living expenses are normally due within 12 months or when the agricultural commodities sell. For larger purchases such as equipment, minor repairs, or livestock, the term will not exceed 7 years.

Interest Rate:

The interest rate charged is always the lower rate in effect at the time of loan approval or loan closing for the type of loan wanted. Interest rates are calculated and posted the 1st of each month.

Credit Score Basics:

FSA does not use credit scores. Loan applicants are expected to have acceptable repayment history with other creditors, including the Federal Government. Loan applicants are not automatically disqualified if there are isolated incidents of slow payments; no credit history; or if it can be shown that any recent undesirable credit problems were temporary and beyond a loan applicant’s control. "No history" of credit transaction by a loan applicant does not automatically indicate an unacceptable credit history.


Applications for emergency loans must be received within eight months of the county’s disaster or quarantine designation date.

Contact your local FSA office to begin the application process.

When a tornado, flood, or drought strikes, or a quarantine is imposed by the Secretary of Agriculture, or when other natural disasters occur, FSA's Emergency loan program is there to help eligible farmers and ranchers&#x2004;rebuild and recover from sustained losses.


The Emergency loan program is triggered when a natural disaster is designated by the Secretary of Agriculture or a [natural disaster or emergency is declared](https://www.fsa.usda.gov/news-room/emergency-designations/index) by the President under the Stafford Act. These loans help producers who suffer qualifying farm related losses directly caused by the disaster in a county declared or designated as a primary disaster or quarantine area. Also, farmers located in counties that are contiguous to the declared, designated, or quarantined area may qualify for Emergency loans.


For production losses, a 30% reduction in a primary crop in a designated or contiguous county is required. Losses to quality, such as receiving a 30% reduced price for flood damaged crops, may be eligible for assistance, too.


**Loan Purposes:**


Emergency loan funds may be used to:

- Restore or replace essential property

- Pay all or part of production costs associated with the disaster year

- Pay essential family living expenses

- Reorganize the family farming operation

- Refinance certain non-real estate operating debts



When a tornado, flood, or drought strikes, or a quarantine is imposed by the Secretary of Agriculture, or when other natural disasters occur, FSA's Emergency loan program is there to help eligible farmers and ranchers rebuild and recover from sustained losses.

The Emergency loan program is triggered when a natural disaster is designated by the Secretary of Agriculture or a natural disaster or emergency is declared by the President under the Stafford Act. These loans help producers who suffer qualifying farm related losses directly caused by the disaster in a county declared or designated as a primary disaster or quarantine area. Also, farmers located in counties that are contiguous to the declared, designated, or quarantined area may qualify for Emergency loans.

For production losses, a 30% reduction in a primary crop in a designated or contiguous county is required. Losses to quality, such as receiving a 30% reduced price for flood damaged crops, may be eligible for assistance, too.

Loan Purposes:

Emergency loan funds may be used to:
- Restore or replace essential property
- Pay all or part of production costs associated with the disaster year
- Pay essential family living expenses
- Reorganize the family farming operation
- Refinance certain non-real estate operating debts

Eligibility Requirements:

For production losses, a 30% reduction in a primary crop in a designated or contiguous county is required. Losses to quality, such as receiving a reduced price for flood damaged crops, may be eligible for assistance.

In addition to the general eligibility requirements all loan applicants must meet, there are some additional criteria unique to the Emergency Loan program:
- The loan applicant must be an established farmer and either the owner-operator or tenant-operator of the farm at the time of the disaster
- Loan applicants must intend to continue farming
- Loan applicants must get written declinations of credit from organized commercial lending institutions
    - If the loan is greater than $100,000 and less than $300,000, only 1 letter is required
    - If the loan is greater than $300,000, 2 letters of declination are required
    - If the loan amount requested is $100,000 or less, this requirement is determined on a case by case basis at the Agency's discretion
- Loan applications must be received by the Agency no later than 8 months after the date the disaster is declared or designated
- The loss and/or damage to the farm operation must be directly attributed to the stated reason of the disaster declaration
- Crop insurance is not required at the time of the loss but will be a requirement for the coming year in order to receive a loan

- Fact Sheet: Emergency Loan Program
- Fact Sheet: Emergency Disaster and Declaration Process
- Other FSA Disaster Assistance Programs
- USDA Disaster Resource Center
- Direct Loan Making Handbook 3-FLP
- Access to FEMA Disaster Help and Resources
- Farmers.gov

Trees

Wildfire

Coronavirus

Hurricane

Tornado

Flood

Drought

Emergency

Weather

Disaster Relief

Maximum Loan Limitations:

The maximum loan amount for an Emergency loan is $500,000 yet the amount a loan applicant may receive is limited to the actual amount of production or physical loss caused by the disaster. Physical loss loans are based on the amount needed to replace the lost property, such as stored grain, equipment and livestock.

Repayment Terms:

Repayment terms are based on the useful life of the security, a loan applicant's repayment ability, and the type of loss involved. The repayment schedule will require at least 1 payment every year. Emergency loans for annual operating expenses must be repaid within 12 months, and not to exceed 18 months if an extended term is necessary for the production cycle of the agricultural commodity.

Interest Rate:

Interest rates are calculated and posted the 1st of each month. The interest rate charged is always the lower rate in effect at the time of loan approval or loan closing for the type of loan wanted.

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.


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


Feed

Seed

Fertilizer

Pest Management

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. To be eligible for a direct loan, applicants must be denied credit from three lenders, which include the Farm Credit Bank and two other private lenders including banks, savings and loan associations, credit unions, and mortgage loan companies.

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 will be taken into consideration. Acceptable applications are presented to the Board of Agriculture for final approval.

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 Aquaculture 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 Aquaculture 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 qualified aquaculturist is:
- A person or association of persons, actively engaged in aquaculture farming, aquaculture produce processing, or aquacultural product development activities; and
- An adult resident of the State or a corporation or aquacultural cooperative licensed to do business in Hawaii or a partnership in which at least one partner is an adult resident of the State; and
- A sound credit risk with the ability to repay money borrowed; and
- Able to produce satisfactory credit references.

Aquaculture loans are for applicant who intends to devote full-time to aquaculture. A full-time aquaculturist is defined as a person who devotes most of their time to aquaculture or derives a major portion of their income from aquaculture farming operations.

Aquaculture

Aquatic Plants

Seafood

Eels

Fish

Shellfish

Atka Mackerel

Carp

Catfish

Flounder

Goosefish

Herring

Hybrid Striped Bass

Largemouth Bass

Ornamental Fish

Pacific Cod

Pacific Ocean Perch

Pollock

Recreational Sportfish

Red Drum

Sablefish

Salmon

Sole

Sturgeon

Tilapia

Trout

Tuna

Turbot

Crustaceans

Crab

Dungeness Crab

King Crab

Snow Crab

Southern Tanner Crab

Crayfish

Lobster

Molluscs

Geoduck

Squid

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


Training

Loans to Sole Proprietors, Partnerships, & Corporations:
- Farm Ownership & Improvement Loan: Purchase or improvement of aquaculture farmland.
- Operating Loan: Purchase of aquatic equipment, fishstock; payment of production and marketing expenses including materials, labor, & services; and living expenses.

Loans to Aquaculture Cooperatives:
- Facility Loan: Purchase or improve land, building and equipment.
- Operating Loan: Provide operating capital to finance inventories, warehouse, and shipping commodities, extension of consumer credit to justified members and other normal operating expenses.

Interest rates for aquaculture loans are fixed at 5% per annum.

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.

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.

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.

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

Research

Compliance

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.

To apply, fill out the Loan Loss Reserve Application and submit to:
Missouri Agricultural and Small Business Development Authority 
P.O. Box 630 
Jefferson City, MO 65102-0630 
Telephone: (573) 751-2129 
Fax: (573) 522-2416 
E-mail: masbda@mda.mo.gov


MASBDA

MAESTRO offers tools and incentives for farmers to improve energy efficiency on livestock farms. 


The Loan Loss Reserve Program encourages lenders to finance the energy efficiency improvements on both the farm and home.



MAESTRO offers tools and incentives for farmers to improve energy efficiency on livestock farms. 

The Loan Loss Reserve Program encourages lenders to finance the energy efficiency improvements on both the farm and home.

- Animal agriculture farmers not required to be permitted as a confined animal feeding operation (CAFO),
- Applicant must be a legal resident and at least 18 years old,
- Applicant must be able to provide proof of citizenship or immigration status, identity and residence. If the borrower employs laborers, he/she must also provide proof of enrollment and participation in the federal work authorization program.
- An eligible lender is any state or national bank, farm credit system, bank for cooperatives, federal or state chartered savings and loan association, federal or state building and loan association, or small business investment company all of which must be subject to credit examination by an agency of the state or federal government,
- Eligibility will not be determined or otherwise affected by any consideration of race, religion, sex, creed, color, or residence, other than the individual borrower must be a legal Missouri resident at least 18 years of age, and the farm and/or farm house must be located in Missouri.


Livestock

Cattle

Pigs

Poultry

Sheep

Specialty Livestock

Beef Cattle

Dairy Cattle

Feeder Cattle

Slaughter Cattle

Barrows

Boars

Feeder Pigs

Hogs

Sows

Chickens

Cornish Hens

Ducks

Geese

Turkey

Ewes

Lambs

Rams

Alpacas

Beefalo

Bison

Buffalo

Caribou

Deer

Emus

Equine

Goats

Guinea Pigs

Llamas

Mink

Mohair

Ostrich

Pheasants

Quail

Rabbits

Reindeer

Water Buffalo

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

- Guidelines
- Loan Loss Reserve Application

Records: MASBDA reserves the right to ask for additional information necessary to ensure program eligibility.
Audit: MASBDA reserves the right to audit approved loans to ensure compliance with program requirements.

List of Agricultural Funding for Housing