What to say when you ask FSA about a farm loan
To get a direct FSA loan, you need to be unable to get enough credit elsewhere at reasonable rates and terms. If a guaranteed loan through a commercial lender might work, FSA can help with that too. These are real loans with repayment and security requirements.
Where to go: The Farm Loan Team at your FSA county office. Call first: not every Service Center has loan staff.
When: Applications are taken year-round. Ask the loan officer about current timing and funding.
Farmer’s Navigator is not USDA or a lender. FSA decides eligibility and loan terms.
If you call
Fill in the brackets with your own details.
“Hi, I’d like to talk with a farm loan officer. I’m a [beginning / established] [farmer / rancher] looking for [operating money / a land purchase / emergency funds after a disaster]. Could I set up an appointment, and what should I bring to the first meeting?”
If you walk in
“Hi, I’d like to ask about an FSA [operating / ownership / microloan / emergency] loan. I run [type of operation] on [X] acres, and I’m looking for about $[X] for [purpose]. I’ve [talked with a lender / not yet talked with a lender]. Can you walk me through which loan might fit and what an application needs?”
What to bring
- Your last 3 years of financial records, including tax returns. A microloan needs one year.
- Your last 3 years of production records, such as APH or livestock numbers. A microloan needs one year.
- A current balance sheet and a farm operating plan with a projected cash flow
- A written description of your farm training and experience
- Two recent pay stubs or other proof of non-farm income
- Proof of debts over $5,000 that don’t show on your credit report
- What you’ve heard from other lenders, in writing if you have it
- Form AD-1026 on file with FSA
- For a land purchase: the signed sales agreement and full legal description
- For an emergency loan: form FSA-2309, Certification of Disaster Losses
- The credit report fee: $16 for an individual, $24.50 for a married couple, $50 for an entity
Questions to ask
- Which loan fits my situation: direct operating, direct ownership, down payment, microloan, guaranteed or emergency?
- What is the current interest rate for that loan?
- How do you decide whether I can get enough credit elsewhere, and what do you need from me to show it?
- Do I meet the definition of a beginning farmer for loans? Are there funds reserved that I might qualify for?
- What borrower training would be required?
- How long do the steps usually take right now?
- Could an FSA loan cover my share of an EQIP project?
What happens next
- You complete form FSA-2001 and the items on its checklist. FSA sends a letter saying whether the application is complete, and an incomplete one can’t be processed.
- A loan officer may visit your farm. The review can include an environmental review and an appraisal.
- FSA sends its decision by letter. If you’re approved, the officer goes over security and closing.
- If funds aren’t available when you’re approved, FSA can keep the application on file until they are.
Good to know
- Microloans are loans of $50,000 or less for operating or ownership purposes, with a simpler application and less paperwork.
- The limits on direct loans are $400,000 for operating, $600,000 for ownership and $500,000 for emergency loans.
- FSA’s loan rule defines a beginning farmer as one who has not operated a farm for more than 10 years, along with other tests.
- FSA reserves a portion of direct and guaranteed ownership and operating loan funds for beginning farmers each year.
Sources
- Form FSA-2001 (04-01-26), checklist on page 12
- farmers.gov farm loan quick guide
- 7 CFR 761.2, definitions
- 7 CFR 761.8, loan limits
- 7 CFR 761.209, funds for beginning farmers
- 7 CFR 764.51, application
- 7 CFR 764.53, processing
- 7 CFR 764.101(e), credit elsewhere
Last updated . Checked against the sources above.
farmersnavigator.com/tools/scripts/fsa-loans