Established in 1862, the Department of Agriculture serves all Americans through anti-hunger efforts, stewardship of nearly 200 million acres of national forest and rangelands, and through product safety and conservation efforts. The USDA opens markets for American farmers and ranchers and provides food for needy people around the world.
Fiscal Year 2015: Direct Loans$1,007,898,000 Guaranteed Loans $2,041,130,000 Actual Direct Farm Ownership loans made in FY 2015 were 5,580 with actual obligations of $1,007,898,000. Actual Guaranteed Farm Ownership loans made in FY 2015 were 4,389 with actual obligations of $2,041,130,000. Fiscal Year 2016: Direct OL: $1,050,000,000 Guaranteed FO: $2,500,000,000 The Agency estimates 5,800 Direct Farm Ownership loans being made in FY 2016 for total obligations estimated at $1,050,000,000. Through August 9, 2016 there were 4,829 loans made with a value of $869,905,000. The Agency estimates 5,400 Guaranteed Farm Ownership loans being made in FY 2016 for total obligations estimated at $2,500,000,000. Through August 9, 2016 there were 4,465 loans made with a value of $2,192,316,000. Fiscal Year 2017: Direct OL: $1,500,000,000 Guaranteed FO: $2,000,000,000 The Agency estimates 8,300 Direct Farm Ownership loans being made in FY 2017 for total obligations estimated at $1,500,000,000. The Agency estimates 4,300 Guaranteed Farm Ownership loans being made in FY 2017 for total obligations estimated at $2,000,000,000.
Uses and Use Restrictions
Loan funds may be used to: (1) Enlarge, improve, and purchase farmland; (2) construct or repair buildings and other fixtures; (3) develop farmland to promote soil and water conservation; (4) provide facilities to produce fish under controlled conditions.
Guaranteed farm ownership loans may be used to refinance debts under certain conditions.
An applicant must: (1) Be a citizen of the Untied States, United States non-citizen national, or a qualified alien under applicable Federal immigration laws; (2) have the legal capacity to incur the obligations of the loan; (3) be unable to obtain credit elsewhere or unable to obtain the loan without a guarantee; (4) not have had a previous loan which resulted in a loss to the Agency (with certain conditions); (5) not be delinquent on any federal debt; (6) after the loan is closed, be an owner/tenant operator of a family farm.
For an operating loan (OL), the producer must be the operator of a family farm; (7) have participated in the business operations of a farm for at least 3 out of the 10 years prior to the appilcation (for direct loans only); (8) not have been convicted of crop insurance fraud (in certain circumstances); and (9) not have any controlled substance convictions.
In addition, a direct loan applicant must have sufficient education, training, or experience in managing and operating a farm or ranch that demonstrates the managerial ability to succeed in farming.
Corporations, cooperatives, joint operations, and partnerships and their members/stakeholders must meet most of these same eligibility requirements, and the entity must also be authorized to operate a farm or ranch in the State where the land is located.
To be eligible to obtain a direct loan, a borrower must agree to abide by any 'borrower training' requirements.
Applicants/borrowers requesting guaranteed loan assistance must meet all lender requirements.
Applicants/borrowers are the direct beneficiaries and must meet the applicant eligibility requirements. Families, individuals, and entities who are or plan to become farmers, ranchers or aquaculture operators are the beneficiaries.
Applicants for direct loans must be unable to obtain credit elsewhere and applicants for guaranteed loans must be unable to obtain credit without the guarantee. This program is excluded from coverage under 2 CFR 200, Subpart E - Cost Principles.
Aplication and Award Process
Preapplication coordination is not applicable.
Environmental impact information is not required for this program.
This program is excluded from coverage under E.O.
This program is excluded from coverage under 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Applicants may apply for direct loans at local FSA offices. Guaranteed loans may be available from local commercial lenders who apply for loan guarantees from FSA.
Applicants may apply for direct loans at local FSA offices. If the total outstanding direct ownership loan debt (combined with direct farm operating debt) will be less than $50,000, it would be considered a direct microloan. Microloans have a separate application process. Guaranteed loans may be available from local commercial lenders who apply for loan guarantees from FSA.
Consolidated Farm and Rural Development Act, as amended, Subtitle A, Sections 302, 310D, Public Laws 100-233, 87-128, 91-620, 95-334, 97-98, 7 U.S.C. 1922; Section 303, Public Laws 87-708, 90-488, 95-113, 96-438, 7 U.S.C. 1923; Section 305, Public Law 92-419, 7 U.S.C. 1925; Section 307, Public Law 97-35, 7 U.S.C. 1927; Section 308, Public Laws, 87-798, 89-240, 92-133, 7 U.S.C. 1928; 7 U.S.C. 1934.
Range of Approval/Disapproval Time
The loan approval official approves or disapproves a completed application. The average approval time for direct loans is 30 days and 10 days for guaranteed loans.
From 30 to 60 days. Applicants for direct and guaranteed loans may appeal adverse action taken. The applicant is given an opportunity to appeal the decision to the National Appeals Division. The applicant may, in the final step of the appeals process, request a review by the Director, National Appeals Division, Washington, DC.
Applicants may reapply at any time. Applicants denied assistance through the appeal process must establish that substantial change has occurred, since the denial decision.
Formula and Matching Requirements
This program has no statutory formula. Matching requirements are not applicable to this program. MOE requirements are not applicable to this program.
Length and Time Phasing of Assistance
Loans justified may be scheduled over a period up to 40 years. The interest rate for guaranteed loans is negotiated between the lender and borrower. See the following for information on how assistance is awarded/released: loan funds may be dispersed in lump sum or increments. See the following for information on how assistance is awarded/released: loan funds may be dispersed in lump sum or increments.
Post Assistance Requirements
No reports are required.
No audits are required for this program.
Records on production, income, expenses during the period of the loan.
12-4213-0-3-351 - Guaranteed Loans Financing Account; 12-4212-0-3-351 - Direct Loans Financing Account; 12-1140-0-1-351.
(Direct Loans) FY 15 $1,007,898,000; FY 16 est $1,500,000,000; and FY 17 est $1,500,000,000. (Guaranteed/Insured Loans) FY 15 $2,041,130,000; FY 16 est $2,000,000,000; and FY 17 est $2,000,000,000
Range and Average of Financial Assistance
Direct Farm Ownership Loans up to $300,000; Guaranteed Farm Ownership Loans up to $1,399,000. (amount adjusted annually) FY 2015: Direct Farm Ownership Loan average loan size $180,000. FY 2015: Guaranteed Farm Ownership Loan average loan size $465,000.
Regulations, Guidelines, and Literature
7 CFR, Part 761, 762, & 764. Farm Service Agency Fact Sheets; FSA Handbook 1 FLP, 2 FLP & 3 FLP; FSA Program Aids 1610 'Farm Service Agency Producers Guide to Loan Programs', 1620 'Lender's Guide to FSA Loan Programs'; FSA Brochure FSA-BR-01 'Your Guide to FSA Farm Loans' above information is avialable on FSA website at:www.fsa.usda.gov.
Regional or Local Office
None. Contact the appropriate FSA State Office listed in Appendix IV of the Catalog. Vist the FSA website at www.fsa.usda.gov.
Connie Holman 1400 Independence Avenue, SW, Washington, District of Columbia 20250 Email: firstname.lastname@example.org Phone: 202-690-0756
Criteria for Selecting Proposals
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