If you’re considering purchasing a poultry farm, securing the right financing can be one of the most critical steps in making your dream a reality. The USDA Farm Service Agency (FSA) offers several direct lending programs specifically designed to assist new and existing farmers. These programs provide the financial support needed to start, expand, or maintain a poultry farming operation. The PoultrySouth Team is here to help you navigate these loan programs, ensuring you can take full advantage of the opportunities available.

USDA FSA Direct Lending Programs

1. Direct Farm Ownership Loans

• • Purpose: To help farmers purchase farms or ranches, expand existing operations, increase productivity, and improve essential structures.
  • Loan Uses:
    • Purchase of farmland
    • Constructing or improving farm buildings or fixtures
    • Promoting soil and water conservation
    • Loan Amount: Up to $600,000
    • Repayment Term: Up to 40 years

• • Eligibility Requirements:
    • Must be a family farmer.
    • Must have at least 3 years of farm management experience within the past 10 years.
      • Acceptable means to prove farm management experience include records of actual participation in the operations of a farm or ranch, employment in a farm – related field, or training programs related to farming.
    • Demonstrate sufficient income to repay the loan.
    • Be unable to obtain sufficient credit elsewhere.
    • Be a U.S. citizen or legal resident.
    • No federal or state convictions for controlled substances.

2. Direct Farm Operating Loans

• • Purpose: To assist farmers in managing the day-to-day operations of their farm/ranch.
  • Loan Uses:
    • Purchase of livestock, equipment, feed, seed, and supplies
    • Soil and water conservation projects
    • Operating expenses
    • Loan Amount: Up to $400,000
    • Repayment Term: 1 to 7 years
  • Eligibility Requirements:
    • Must be a family farmer.
    • Must have at least 1 year of farm management experience.
      • Acceptable means to prove farm management experience include records of involvement in the operations of a farm, participation in farming training programs, or working under a mentor farmer.
    • Demonstrate sufficient income to repay the loan.
    • Must have satisfactory credit history.
    • Be unable to obtain sufficient credit elsewhere.
    • Be a U.S. citizen or legal resident.

3. Microloans

• • Purpose: To provide small, beginning, niche, and non-traditional farm operations with access to financial resources.
  • Loan Uses:
    • Similar to Direct Farm Operating Loans but designed for smaller-scale operations
    • Can also be used for equipment, tools, irrigation, hoop houses, and other minor improvements
    • Loan Amount: Up to $50,000
    • Repayment Term: 1 to 7 years for operating microloans; up to 25 years for farm ownership microloans
  • Eligibility Requirements:
    • Must be a family farmer.
    • Must have some farm management experience or participation in farming activities or training programs.
      • Acceptable means to prove farm management experience include previous employment in farming, operating a small or niche farming enterprise, or completion of agricultural training programs.
    • Demonstrate sufficient income to repay the loan.
    • Focus on small or niche farming operations.
    • Be unable to obtain sufficient credit elsewhere.
    • Be a U.S. citizen or legal resident.

4. Direct Farm Ownership Down Payment Loan

• • Purpose: To help beginning farmers and ranchers purchase a farm or ranch by offering a lower down payment requirement.
  • Loan Uses: Purchase of a farm or ranch
  • Loan Amount: Up to 45% of the purchase price, not to exceed $300,150
    • Down Payment: At least 5% of the purchase price
    • Repayment Term: Up to 20 years
  • Eligibility Requirements:
    • Must be a beginning farmer or rancher.
    • Must have at least 3 years of farm management experience within the past 10 years.
    • Acceptable means to prove farm management experience include participation in farm operations, relevant employment, or completion of farming-related training programs.
    • Be unable to obtain sufficient credit elsewhere.
    • Be a U.S. citizen or legal resident.
    • Provide at least 5% down payment.

Definitions

• Family Farmer: An individual or entity that produces agricultural commodities for sale in sufficient quantities to contribute to the farm’s financial viability. The majority of the farm’s labor and management must be provided by the family operating the farm.
• Beginning Farmer: An individual or entity who has not operated a farm or ranch for more than 10 years and substantially participates in the operation. In the case of an entity, all members must meet these criteria.
• Legal Resident: An individual with the legal right to live and work in the U.S., typically evidenced by a Permanent Resident Card (green card). Legal residents are not U.S. citizens but have legal authorization to remain in the U.S. and enjoy certain rights and protections.

Application Process

The application process typically involves:

1. Preparation: Gathering necessary documents such as proof of experience, financial
   statements, and a business plan.
2. Consultation: Contacting your local USDA Service Center or FSA office for guidance and to
   discuss eligibility and requirements.
3. Submission: Completing and submitting the application forms along with the required
   documentation for review.

Why Choose USDA FSA Loans?

These USDA FSA direct lending programs are invaluable for new and expanding poultry farmers. They provide the much-needed financial support for purchasing and operating poultry farms, especially for beginning farmers who might not have access to commercial credit. The loans come with competitive rates and manageable repayment terms, making them a practical choice for ensuring the financial stability and growth of your farming operation.

Let the PoultrySouth Team Help You

Understanding and navigating these loan programs can be challenging, but the PoultrySouth Team is here to assist you every step of the way. With their expertise and experience, they have helped many aspiring poultry farmers take full advantage of USDA FSA programs. They can provide invaluable guidance and support, ensuring that you understand the eligibility requirements, application process, and the best way to utilize the loans for your farming needs.

Conclusion

The USDA FSA direct lending programs offer a fantastic opportunity for anyone looking to buy or expand a poultry farm. With the right financial support, you can secure the resources needed to build a thriving farming operation. The PoultrySouth Team is dedicated to helping you navigate these programs, providing the assistance and expertise you need to succeed.

If you’re ready to embark on your poultry farming journey, let the PoultrySouth Team help you understand more about these USDA FSA loans and how they can benefit you. Contact the PoultrySouth Team today to learn more about how they can assist you in making your dream of owning a poultry farm a reality.