Guaranteed farm loans available for next year
GREENWICH, N.Y. — U.S. Department of Agriculture Farm Service Agency Farm Loan Manager Rebecca DeSorbe has announced that guaranteed farm ownership loan funds for fiscal year 2012 have been exhausted, but farmers and ranchers in New York will have more funds available for fiscal 2013, which started Oct. 1.
Farmers and ranchers in New York received $24.1 million in guaranteed farm ownership loans this past year.
FSA-guaranteed loans allow lenders to provide agricultural credit to farmers who do not meet the lender’s normal underwriting criteria. Farmers and ranchers apply for a guaranteed loan through a commercial lender and the lender arranges for the guarantee.
FSA can guarantee up to 95 percent of the loss of principal and interest on a loan. Guaranteed loans can be used for both farm ownership and operating purposes.
According to DeSorbe, the guaranteed loan limit will increase to $1,302,000 starting next fiscal year.
“FSA is committed to providing credit through guaranteed and direct loans to eligible farmers and ranchers who need capital to continue or start their agricultural operations,” she said.
For questions regarding guaranteed farm loans, contact the Greenwich Service Center FSA office at (518) 692-9940, Ext. 2.