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The 2014 Farm Bill offers increased opportunities for producers including farm loan program modifications that create greater flexibility. A fact sheet outlining modifications to the U.S. Department of Agriculture’s (USDA) Farm Service Agency (FSA) Farm Loan Programs is available.

The Farm Bill expands lending opportunities for producers to begin and continue operations, including greater flexibility in determining eligibility, raising loan limits, and emphasizing beginning and socially disadvantaged producers.

Changes that will take effect immediately include:

  • Elimination of the 15 year term limit for guaranteed operating loans.

  • Modification of the definition of beginning farmer, using the average farm size for the county as a qualifier instead of the median farm size.

  • Lowering the interest rate on Joint Financing Direct Farm Ownership loans to 2% less than regular Direct Farm Ownership rate, with a floor of 2.5%. Previously, the rate was established at 5%.

  • Increase of the maximum loan amount for Direct Farm Ownership Down Payment Loan Program from $225,000 to $300,000.

  • Elimination of rural residency requirement for Youth Loans, allowing urban youth to benefit.

  • Increase of the guaranteed percentage on Conservation Loans from 75 to 80 percent and 90 percent for socially disadvantaged borrowers and beginning farmers.

  • Microloans will not count toward direct operating loan term limits for veterans and beginning farmers.Additional modifications must be implemented through the rulemaking processes.

Visit the FSA Farm Bill website for detailed information and updates to farm loan programs.
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