Farm Service Agency Loans
FSA makes thousands of loans each year to farmers who need a helping hand. Whether it’s a young husband and wife who are ready to buy their first farm, a veteran farmer facing temporary adversity, or a farmer who has suffered from extreme weather conditions, FSA provides financial assistance that helps ensure the well-being of American agriculture. Community 1st Credit Union is ready to help and serve Iowa farmers.
Farm Operating Guaranteed Loan (OL)
How to Qualify
- Must be a citizen of the United States
- Have legal capacity to incur the obligations of the loan
- Be unable to obtain sufficient credit elsewhere at reasonable rates and terms to finance loan needs
- Be the operator of the family farm after the loan is closed
- Not be delinquent on any Federal debt
- Have satisfactory credit history
- Demonstrate repayment ability
- Provide sufficient security for the loan
Use of Proceeds
- Purchase livestock, poultry, equipment, feed, seed, farm chemicals, and supplies
- Soil and water conservation
- Refinance indebtedness within certain limitations
Maximum Loan Amount
- $1,094,000 (Amount adjusted annually for inflation)
Rates and Terms
- Loan guarantee up to 90%
- Guarantee Fee ~ 1% of the loan
- From one to seven years
- Rates not to exceed those charged lender’s average farm customers
- Interest rate reduction of 4% available for those unable to repay at regular rates
Collateral
- Each loan must be adequately secured. Collateral generally consists of a first lien on crops to be produced and on livestock and equipment purchased or refinanced with loan funds. A lien may be taken on certain other chattel and real estate property, and an assignment usually will be taken on income, such as that from a dairy enterprise.
Farm Ownership Guaranteed Loan (FO)
How to Qualify
- Three years of farm operating experience
- Must be a citizen of the United States
- Have legal capacity to incur the obligations of the loan
- Be unable to obtain sufficient credit elsewhere at reasonable rates and terms to finance loan needs
- Be the owner and operator of the family farm after the loan is closed
- Not be delinquent on any Federal debt
- Have satisfactory credit history
- Demonstrate repayment ability
- Provide sufficient security for the loan
Use of Proceeds
- Purchase land
- Construct buildings or other improvements
- Soil and water conservation
Maximum Loan Amount
- $1,094,000 (Amount adjusted annually for inflation)
Rates and Terms
- Loan guarantee up to 90%
- Guarantee Fee ~ 1% of the loan
- Up to 40 years
- Rates not to exceed those charged lender’s average farm customers
Collateral
- Real estate or a combination of real estate and chattel property
Helpful Resource For ALL FSA Loans
U.S. Department of Agriculture Farm Service Agency (for information about FSA and loan applications):
Community 1st Credit Union will work with you to analyze your situation and provide assistance. To find out more on how you can qualify or apply for a FSA Loan, contact one of our Business/Agriculture Loan Officers today.
