South Dakota Farm Service Agency State Executive Director Craig Schaunaman reminds farmers and ranchers that the FSA borrowing limit for microloans increased today from $35,000 to $50,000. Microloans offer borrowers simplified lending with less paperwork. Schaunaman said it makes borrowing from FSA a “first opportunity” to farm or ranch or quickly expand existing operations.
“This will help more people because of new flexibilities created by the 2014 Farm Bill,” Schaunaman said. “We’re especially excited in South Dakota, because we want to encourage more beginners and young people, especially those from historically underserved communities, to consider farming and ranching as a way to become independent businessmen and women. It’s a rewarding way to build or expand a family operation.”
The microloan change allows beginning, small and mid-sized farmers to access an additional $15,000 in loans using a simplified application process with up to seven years to repay.
Since 2010, FSA has made a record amount of farm loans – more than 165,000 loans totaling nearly $23 billion. More than 50 percent of USDA’s farm loans now go to beginning farmers.Share