FSA Farm Ownership Loan (Direct)
USDA Farm Service Agency direct loans up to $600,000 for farmers to purchase, construct, or improve farms and ranches.
About this program
FSA Direct Farm Ownership Loans help family-size farmers and ranchers who cannot obtain commercial credit to buy farmland, construct or improve buildings, develop soil/water conservation, and pay closing costs. Maximum loan: $600,000 with terms up to 40 years and interest rates set monthly. Beginning farmers can use a Down Payment Loan Program requiring only 5% down. A joint financing arrangement allows beginning farmers to combine FSA funds (up to 50%) with commercial lender funds at favorable rates.
Eligibility
Family farmers and ranchers who cannot obtain commercial credit; U.S. citizens or permanent residents; have 3 years of farm management experience within the past 10 years (with some substitutions allowed for education, military leadership, or business management).
Requirements
- Unable to obtain commercial credit elsewhere
- 3 years farm management experience (with substitutions)
- U.S. citizenship/permanent residency