Changes to Microloan Program Benefit Beginning and Family Farmers

Starting November 7, 2014, the US Department of Agriculture is making changes to its farm loan program so that they can provide more assistance to beginning and family farmers.  Changes to this prog

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2 thoughts on “Changes to Microloan Program Benefit Beginning and Family Farmers

  1. Greetings Kathy,

    Your USDA loan article caught my attention as I have experience through my work advising a farmer who participated in a similar loan program run by USDA FSA. I have several concerns about how they manage these “small loans”, which are:
    1) The term is too long when the money is used to finance cattle – 7 years for an asset that may not last that long. While a shorter term increases the payments, it is more likely to be paid off while the asset still is present to generate income to help make the payments.
    2) Here in Virginia, a cattle loan made by USDA FSA is also secured by a lien on the land. In my view, this is way too much security and it puts the land at risk. The cattle should be the security and are the security in most other Virginia farm lending situations involving cattle.
    3) No support, education or training is provided to inexperienced farmers by the lender – in this case USDA FSA. They are handed a check and sent into the “lions den” of cattle markets to fend for themselves. Experienced cattle traders can and do take advantage of new money.

    1. Well put.! There is a lot of us who are not novices but could use more help that cant seem to get the help they need.I’ve given up on the govt !

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