BOZEMAN, MT – If you’re a new farmer or rancher in Montana and struggling to get a loan, the U.S. Department of Agriculture Farm Service Agency has some options for you. They’re offering farm ownership and operating loans specifically for folks who can’t get commercial credit from banks.
Lance Wasson, FSA Acting State Executive Director in Montana, explained why these loans matter. “Farming and ranching is a capital-intensive business and FSA is committed to helping producers start and maintain their agricultural operations,” he said.
Last year, the FSA in Montana lent more than $37 million to help new farmers and ranchers get started. To qualify as a beginning farmer, you need less than 10 years of farm operation experience and must be actively involved in the farm’s operation.
For those interested in farm ownership loans, make sure you don’t own more than 30% of the average-sized farm in your county. Plus, you’ll need at least three years of experience in farm business operations within the last decade.
Direct loans come straight from the FSA, while guaranteed loans are offered by lending institutions with FSA’s backing. The agency can cover up to 95% of a loan’s principal and interest loss, making it easier for lenders to help you out if you don’t meet their usual criteria.
These loans can help you buy or expand a farm, get equipment, or cover day-to-day costs. Direct operating loans have repayment terms from one to seven years, while farm ownership loans can stretch up to 40 years.
For more details, reach out to your local FSA office.
