How To Apply Farm Loans?

By Debapriya Dutta Dec 01, 2016 03:02 PM EST

Avail farm loans with the minimum interest rate: Build an agricultural farm, Harvest good number of plants and make a huge profit

Foreclosure Crisis Spreads Across U.S. As Idaho Defaults Mount
Cows from a nearby dairy farm sit in pens near homes in Charter Pointe, a development where more than half of the homes listed for sale are bank-owned or are worth less than their mortgage, in Boise, Idaho, U.S., on Thursday, Aug. 5, 2010. Home foreclosures are climbing in the Northwest and Midwest, areas that had earlier dodged the worst of the mortgage crisis. Home seizures in the second quarter soared 822 percent in Idaho, which had a jobless rate of 8.8 percent in July.

Getting a suitable farm loan is every farm owner's first concerned. Without farm loan, it is difficult to support a farm. In order to help all farmers, the government has brought different types of farmer loans such as a long-term loan, short-term loans, etc. Apart from government agencies, some private agencies also give this kind of loans. Before going to apply for a farm loan it is better to know how to get it. Let's have a look at the following steps:

1.      Farm service agency, a part of the agriculture department in the US provides farm loans. You can get maximum $300,000 loan from FSA. To avail a loan you have to satisfy all the conditions such as the term of repayment for farm ownership loan cannot be more than 40 years and payment schedule length of farm operating loan should be within seven years. You can apply for farm ownership loan or farm operating loan direct to FSA.

2.      FSA will give you a proper application form which should be submitted according to their rules. FSA offers down payment program to the farmers who are socially disadvantaged. Moreover, FSA offers emergency loans to the farmers who have lost everything and faced losses as a result of the natural disaster. 

3.      FSA provides farm loans, but before going to FSA you have to consult with the state department of the Agriculture whether you can apply for loans or not. If a state department grants you for the loan, then you can apply for a farm loan directly at FSA.

4.      You can go for USDA Rural Development Business and Industry Guaranteed Loans. You can get this type of loan for various purposes up to $40 million. Though the term of the loan varies still the range is between 7 to 30 years

5.      Though FSA provides various types of loans to farmers, still loan related to sustainable agriculture has always been better for farmers. Availability of this type of loan is more than others. Avail this type of loan by following the rules and regulations and submit the form within the last date of submission.

By following the above-mentioned rules you can get farm loans easily, but remember without a good credit history of repayment loans it would be difficult to avail a loan. 

 

 

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