USDA Launches Microloan Program

USDA Launches New Microloan Program

Through the use of existing funds, USDA is adjusting its loan portfolio to reach more prospective newcomer producers with its newest microloan program which is designed to help small and family operations, beginning and socially disadvantaged farmers secure loans under $35,000.

Agriculture Secretary Tom Vilsack shares

Vilsack: “We also help this will help young people transition when they are involved with a loan program that provides assistance for 4-H or FFA young people. We hope this will be the next step up. We also know that a number of returning veterans are interested in potentially interested in getting involved in a farming operation.”

Producers can apply for a maximum of $35,000 to pay for initial start-up expenses such as hoop houses to extend the growing season, essential tools, irrigation, delivery vehicles, and annual expenses such as seed, fertilizer, utilities, land rents, marketing, and distribution expenses.

This new program will also provide a less burdensome, more simplified application process in comparison to traditional farm loans.

Vilsack: “It will provide credit in a reduce time process because we are reducing the forms that need to be filled out. Instead of asking for three years of history, we will simply ask for the most recent cycle of operating history from the producer.”

Since 2009, USDA has made a record amount of farm loans through FSA—more than 128,000 loans totaling nearly $18 billion.

Producers interested in applying for a microloan may contact their local Farm Service Agency.