Farm Service Agency (FSA)
- Thread starter LimiMan
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Dave
Well-known member
I get to deal with them all the time in my day job. Some good, some very frustrating, they can be the most bureaucratic agency in the world. My experence is that it depends on the individual you have to work with as to how smoothlythings go. But be prepared for lots of useless paperwork.
Dave
Dave
EIEIO
Well-known member
A lot just depends on what you want done. So much of their stuff is first come first serve especially when it comes to loans. Are you looking for money or advise?
When I ranched in Arkansas one of my neighbors worked for the FSA and would notify me of any special programs or stuff I might be interested in. It was an ag. friendly small community and they even made sure the local weekly paper contained information for the ranchers.
The only thing I ever applied for was one year after a drought we got money for each cow we had the previous year. Can't even remember how much I got per head but it was a nice chunk of change. Would not have even thought to have applied but my neighbor brought me over the form.
Now if your looking for advise from someone at a FSA it's gonna depend on who you get to talk to. Just like anywhere some employees are better than others. Thankfully I've always had great dealings with my FSA guys.
J
When I ranched in Arkansas one of my neighbors worked for the FSA and would notify me of any special programs or stuff I might be interested in. It was an ag. friendly small community and they even made sure the local weekly paper contained information for the ranchers.
The only thing I ever applied for was one year after a drought we got money for each cow we had the previous year. Can't even remember how much I got per head but it was a nice chunk of change. Would not have even thought to have applied but my neighbor brought me over the form.
Now if your looking for advise from someone at a FSA it's gonna depend on who you get to talk to. Just like anywhere some employees are better than others. Thankfully I've always had great dealings with my FSA guys.
J
There is money available but be ready for Mountains and Mountains of paperwork! If I remember correctly the new funding years in that office starts in Sept. or Oct and the earlier you have an application in the better odds you have.
TheBullLady
Well-known member
I'm assuming you mean the USDA's loan program?
If you're a minority you have a better chance of getting a loan. You have to have been turned down from at least three lenders (you'll have to have letters) you can't own land of your own, and you'll need to have a business plan. The application is about 45 pages long.
Since it's government, you may have to reapply if they run out of money for a certain time period. It's a great interest rate.. but your entire operation will be carefully watched by the agency for any "breach" in your contract. And it may take awhile to get your loan. The last one I did took 9 months.
If you're a minority you have a better chance of getting a loan. You have to have been turned down from at least three lenders (you'll have to have letters) you can't own land of your own, and you'll need to have a business plan. The application is about 45 pages long.
Since it's government, you may have to reapply if they run out of money for a certain time period. It's a great interest rate.. but your entire operation will be carefully watched by the agency for any "breach" in your contract. And it may take awhile to get your loan. The last one I did took 9 months.
Dave
Well-known member
The FSA administers a number of programs so it depends on which one you are talking about. For loan programs it helps if you are a minority or a beginning farmer. I don't work with them on their loan programs but from what little I do know about those programs TheBullLady is right on the mark.
Dave
Dave
flbullrider
Well-known member
The FSA has the Beginning Farmer/Rancher Program which I looked into last year. It might work for some people - with the resitrictions on price and property size I couldn't make the numbers run for a profitable full time operation.
This program will make a direct loan to a qualified individual of up to 40% of the farm purchase price at 4% fixed over 15 years. The appraised value or purchase price of the property can't exceed $250K (whichever is lower), and the property size can't exceed 30% of the average farm size in the community.
Also have heard through the grapevine FSA's budget got SLASHED, so this might not even be availible anymore.
More details at:
http://www.fsa.usda.gov/pas/publication ... loan04.htm
Another rumor I've heard when it comes to borrowing from the USDA in general, particularly operating loans, is if you fall behind or they suddenly determine your operation isn't viable, the USDA can compel the sale barns to cut 2 party checks, so ya have to send the check to the USDA to endorse before you can cash it. Anybody have an experience with this?
Mike Bishop - http://www.flbullrider.com
This program will make a direct loan to a qualified individual of up to 40% of the farm purchase price at 4% fixed over 15 years. The appraised value or purchase price of the property can't exceed $250K (whichever is lower), and the property size can't exceed 30% of the average farm size in the community.
Also have heard through the grapevine FSA's budget got SLASHED, so this might not even be availible anymore.
More details at:
http://www.fsa.usda.gov/pas/publication ... loan04.htm
Another rumor I've heard when it comes to borrowing from the USDA in general, particularly operating loans, is if you fall behind or they suddenly determine your operation isn't viable, the USDA can compel the sale barns to cut 2 party checks, so ya have to send the check to the USDA to endorse before you can cash it. Anybody have an experience with this?
Mike Bishop - http://www.flbullrider.com
TheBullLady
Well-known member
Yes.. that's true. They in essence own or have an interest in your stock also.
eric
Well-known member
Boy, that sounds alot like a SBA loan I looked into yrs ago. Felt like me and the gov't were gonna be partners, with me getting the working end and them getting the profit end. And yes, they wanted access to all financial records, past, present and future!
Decided the wife was partner enough and trashed the entire loan application.
Decided the wife was partner enough and trashed the entire loan application.
TheBullLady
Well-known member
That's been the general response from everyone I know that has either applied for one, or gotten into one. And trust me, they DO come out and check your operation.. make sure you haven't sold the cows, or bought horses with the $$.
