Interest rates are calculated and posted the 1st of each month. The interest rate charged is always the lower rate in effect at the time of loan approval or loan closing for the type of loan wanted. For larger purchases such as equipment, minor repairs, or livestock, the term will not exceed 7 years. General operating and family living expenses are normally due within 12 months or when the agricultural commodities sell. There is no down payment requirement.ĭirect Farm Operating loan repayment terms vary depending upon the purpose of the loan, the loan applicant's ability to pay, and when income is projected to be available. The maximum loan amount for a Direct Farm Operating Loan is $400,000. Loan closing and borrower training costs.Land and water development, use, or conservation.Refinance certain farm-related debts, excluding real estate.Minor improvements or repairs to buildings.initial processing of agricultural commodities, under certain circumstances.Farm operating expenses including, and not limited to:.Purchase of livestock, including poultry.purchase shares in value-added processing and marketing cooperatives.purchasing grain drying and storage equipment to facilitate better marketing.shifting from row crop to vegetable production.change from stocker to cow-calf production.purchase of equipment to convert from conventional to no-till production.Costs associated with reorganizing a farm to improve profitability, for example:.Operating loans must be essential to the success of the farming operation and only for the following purposes: When you meet with your FSA county Farm Loan Program staff, you may be asked to complete additional forms based on applicable loan program requirements for the loan type. Simultaneous requests for a direct farm ownership loan and a direct operating loan should be combined on a single loan application form. *All FSA direct loan applications require the same basic forms. Application Forms* FSA-2001, Request for Direct Loan Assistance
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