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(NAFB) – The USDA says borrowers will have a higher loan limit to get guaranteed farm loans from October 1.
The limit ranges from $ 1.776 million to $ 1.825 million.
“Farm loans are important for our customers’ annual operating and family living costs, emergency needs and cash flow, ”says FSA Administrator Zach Dukenox. “Increasing the guaranteed credit limit will allow the FSA to better meet the financial needs of producers as natural disasters and epidemics continue to affect their operations.”
The FSA provides funding to expand the needs of agricultural loan producers, from securing land to financing the purchase of equipment. Guaranteed loans are financed and serviced by professional lenders. The FSA provides a 95 percent guarantee against potential financial loss of principal and interest. Guaranteed loans can be used for farm ownership and operating purposes.
The FSA saw strong continued demand for guaranteed loans in fiscal year 2021. The FSA issued more than 4 3.4 billion in guaranteed farm ownership and operating loans. This includes about $ 1.2 billion for early farmers. The number of guaranteed borrowers has increased by 10 per cent over the past decade and the FSA expects the growing demand for agricultural loans to continue in the next financial year.
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