Farm Ownership Loans


Farm Service Agency?s loan programs are designed to help family farmers obtain loans and loan guarantees through the extension of credit and supervisory assistance to become owner-operators of not larger than family farms; make efficient use of the land, labor, and other resources; carry on sound and successful farming operations; and enable farm families to have a reasonable standard of living.

General information about this opportunity
Last Known Status
Program Number
Federal Agency/Office
Farm Service Agency, Department of Agriculture
Type(s) of Assistance Offered
E - Direct Loans; F - Guaranteed/Insured Loans
Program Accomplishments
Not applicable.
Consolidated Farm and Rural Development Act, as amended, Subtitle A, Sections 302, 310D, Public Laws 100-233, 87-128, 91-620, 95-334, 97-98, 7 U.S.C. 1922; Section 303, Public Laws 87-708, 90-488, 95-113, 96-438, 7 U.S.C. 1923; Section 305, Public Law 92-419, 7 U.S.C. 1925; Section 307, Public Law 97-35, 7 U.S.C. 1927; Section 308, Public Laws, 87-798, 89-240, 92-133, 7 U.S.C. 1928; 7 U.S.C. 1934.
The Agriculture Improvement Act of 2018, Public Law 115-334
Who is eligible to apply/benefit from this assistance?
Applicant Eligibility
An applicant must: (1) Be a citizen of the Untied States, United States non-citizen national, or a qualified alien under applicable Federal immigration laws; (2) have the legal capacity to incur the obligations of the loan; (3) be unable to obtain credit elsewhere or unable to obtain the loan without a guarantee; (4) not have had a previous loan which resulted in a loss to the Agency (with certain conditions); (5) not be delinquent on any federal debt; (6) after the loan is closed, be an owner/tenant operator of a family farm. For an operating loan (OL), the producer must be the operator of a family farm; (7) have participated in the business operations of a farm for at least 3 out of the 10 years prior to the appilcation (for direct loans only); (8) not have been convicted of crop insurance fraud (in certain circumstances); and (9) not have any controlled substance convictions. In addition, a direct loan applicant must have sufficient education, training, or experience in managing and operating a farm or ranch that demonstrates the managerial ability to succeed in farming. Corporations, cooperatives, joint operations, and partnerships and their members/stakeholders must meet most of these same eligibility requirements, and the entity must also be authorized to operate a farm or ranch in the State where the land is located. To be eligible to obtain a direct loan, a borrower must agree to abide by any "borrower training" requirements. Applicants/borrowers requesting guaranteed loan assistance must meet all lender requirements.
Beneficiary Eligibility
Applicants/borrowers are the direct beneficiaries and must meet the applicant eligibility requirements. Families, individuals, and entities who are or plan to become farmers, ranchers or aquaculture operators are the beneficiaries.
Applicants for direct loans must be unable to obtain credit elsewhere and applicants for guaranteed loans must be unable to obtain credit without the guarantee.
What is the process for applying and being award this assistance?
Pre-Application Procedure
Preapplication coordination is not applicable.
Application Procedure
2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards applies to this program. Applicants may apply for direct loans at local FSA offices. Guaranteed loans may be available from local commercial lenders who apply for loan guarantees from FSA.
Award Procedure
Applicants may apply for direct loans at local FSA offices. If the total outstanding direct ownership loan debt (combined with direct farm operating debt) will be less than $50,000, it would be considered a direct microloan. Microloans have a separate application process. Guaranteed loans may be available from local commercial lenders who apply for loan guarantees from FSA.
Not applicable.
Approval/Disapproval Decision Time
Not applicable.
From 30 to 60 days. Applicants for direct and guaranteed loans may appeal adverse action taken. The applicant is given an opportunity to appeal the decision to the National Appeals Division. The applicant may, in the final step of the appeals process, request a review by the Director, National Appeals Division, Washington, DC.
Not applicable.
How are proposals selected?
Not applicable.
How may assistance be used?
Loan funds may be used to: (1) Enlarge, improve, and purchase farmland; (2) construct or repair buildings and other fixtures; (3) develop farmland to promote soil and water conservation; (4) provide facilities to produce fish under controlled conditions. Guaranteed farm ownership loans may be used to refinance debts under certain conditions
What are the requirements after being awarded this opportunity?
Not applicable.
Not applicable.
Records on production, income, expenses during the period of the loan.
Other Assistance Considerations
Formula and Matching Requirements
Statutory formula is not applicable to this assistance listing.

Matching requirements are not applicable to this assistance listing.

MOE requirements are not applicable to this assistance listing.
Length and Time Phasing of Assistance
Loans justified may be scheduled over a period up to 40 years. The interest rate for guaranteed loans is negotiated between the lender and borrower. See the following for information on how assistance is awarded/released: loan funds may be dispersed in lump sum or increments. loan funds may be dispersed in lump sum or increments.
Who do I contact about this opportunity?
Regional or Local Office
Consult the appropriate FSA State office where the property is located. For a list of FSA State offices with telephone numbers and addresses, information is available on the internet, visit FSA website at to locate nearest office.
Headquarters Office
Houston Bruck
1400 Independence Ave SW
Washington, DC 20250 US
Phone: 2026900756
Website Address
Financial Information
Account Identification
(Guaranteed/Insured Loans) FY 18$2,119,308,000.00; FY 19 est $2,750,000,000.00; FY 20 est $2,750,000,000.00; FY 17$2,278,602,000.00; FY 15$2,041,130,000.00; FY 16 est $2,000,000,000.00; - (Direct Loans) FY 18$1,145,326,000.00; FY 19 est $1,500,000,000.00; FY 20 est $1,500,000,000.00; FY 17$1,044,115,000.00; FY 15$1,007,898,000.00; FY 16 est $1,500,000,000.00; -
Range and Average of Financial Assistance
Direct Farm Ownership Loans up to $300,000; Guaranteed Farm Ownership Loans up to $1,399,000.
Regulations, Guidelines and Literature
7 CFR, Part 761, 762, & 764. Farm Service Agency Fact Sheets; FSA Handbook 1 FLP, 2 FLP & 3 FLP; FSA Program Aids 1610 "Farm Service Agency Producers Guide to Loan Programs", 1620 "Lender's Guide to FSA Loan Programs"; FSA Brochure FSA-BR-01 "Your Guide to FSA Farm Loans" above information is avialable on FSA website
Examples of Funded Projects
Not applicable.


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