Agricultural and Food Policy
 Agri Outlook Radio
Number 185
Policy: USDA Increases Limits for Direct Operating and Farm Ownership Loans (1:39 minutes)
Audio/Video Script:
Robert Coats, Ph.D.
Extension Economist and Professor
University of Arkansas, Division of Agriculture
USDA Increases Limits for Direct Operating and Farm Ownership Loans
USDA has put into place another farm bill provision. The provision
increases the limits on direct farm ownership and operating loans from $200,000
to $300,000. This is the first change in Farm Service Agency (FSA) loan limits
since 1984.
Direct operating loans allow farmers access to credit they need in the
everyday operations of running and sustaining a farm. The increased loan limits
will help producers whose credit requirements could not previously be met by the
FSA loan limits. In addition, some existing FSA borrowers who had already
reached the previous limit of $200,000 will now be eligible to obtain additional
credit from the FSA.
Direct farm loans are made by the FSA with government funds. Farm ownership,
operating, emergency, and youth loans are the main types of loans available
under the direct program. Direct loan funds are also set aside each year for
loans to socially disadvantaged and beginning farmers.
This has been Robert Coats Extension Economist University of Arkansas
Division of Agriculture.
Farmers interested in applying for a direct operating or farm ownership loan
should contact their local FSA office.
USDA New Release
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