First Time Farmer FSA Loan

[heath]

Well now how do you suppose I was told to go to a regular bank ? The only requirement I didn't meet was I could get a loan from someone other than the government . I e I had to much credit .

All you have to do is her 3 banks to give you a letter of denial. All they have to say is you don't meet their requirements, I simply told the banks I wasn't willing to put any money down. My credit score is around 800 so if your sharp you could figure out how to deal with them.

They cannot see your savings and checking accounts?

I guess I am extremely dumb huh?

They look at the accounts, but they look at it for a debt to asset ratio. I'm young and owe on everything.

 

[JSCATTLE]

My situation was like Houston cutters . Everything paid for money in the bank . I wanted to save 100 k over the life of the loan by getting lower interest rate . No deal .

 

[inbredredneck]

My situation was like Houston cutters . Everything paid for money in the bank . I wanted to save 100 k over the life of the loan by getting lower interest rate . No deal .

Okay so you didn't meet the requirements of the begining farmers loan, and you were denied, why then did you not go with a garunteed FO loan? After all you wanted cheap interest right?

 

[highgrit]

Damm, I have 1 son that went through school on scholarships, and essays he wrote to get extra scholarships. I'am very proud of him he's a doctor in Jupiter, Fl. and a very long way from being a dead beat. And back on the subject of first time farmer FSA loan my other boy is almost 20 and all he wants to do is cut hay, farm and raise cows. Already has 18 moma cows that he got a $5,000 loan from the FSA as a young farmer. Thank You FFA. I feel kids that work hard and keep their noses clean deserve my help, and should not be called dead beats.

 

[JSCATTLE]

By that time i was so mad I just gave up . Went with a conventional loan . Besides I really don't want government agents snooping around on my property . And looking at my check book etc.

 

[inbredredneck]

By that time i was so mad I just gave up . Went with a conventional loan . Besides I really don't want government agents snooping around on my property . And looking at my check book etc.

Situations such as this is why so many give FSA loans a bad name, you were mad because you didn't meet the requirements of the begining farmer program and did not understand any of the other loan programs and you gave up. That is not FSA's fault.

 

[JSCATTLE]

By that time i was so mad I just gave up . Went with a conventional loan . Besides I really don't want government agents snooping around on my property . And looking at my check book etc.

Situations such as this is why so many give FSA loans a bad name, you were mad because you didn't meet the requirements of the begining farmer program and did not understand any of the other loan programs and you gave up. That is not FSA's fault.

I feel like it is their fault for not recomending Or explaining other programs they offer . Dealing with the people there was like dealing with the people at the DMV . They act like they ate doing you a favor just talking to you .

 

[inbredredneck]

Situations such as this is why so many give FSA loans a bad name, you were mad because you didn't meet the requirements of the begining farmer program and did not understand any of the other loan programs and you gave up. That is not FSA's fault.

I feel like it is their fault for not recomending Or explaining other programs they offer . Dealing with the people there was like dealing with the people at the DMV . They act like they ate doing you a favor just talking to you .

I guess I have never felt it is someone elses responsibilty to make me learn. The information was available online, at your nearest office in print, and could have even been mailed to you. Most ag lenders understand the FSA loan programs very well, ask them about the FSA loan programs available to you. But please try to not badmouth something simply because you did not understand it. These programs benefit Agriculture as a whole.

 

[JSCATTLE]

My tax dollars are the reason they are there . It's not about making someone learn . It's about offering information . We will just have to agree to disagree . Because im not arguing with you anymore . And I just finished reading through the requirements for the different loans offered by the Fsa . All of them have a requirement of .. Must not be able to qualify for a conventional loan ... :deadhorse:

 

[larryshoat]

My husband and I are trying to fill out these forms for a first time farmer loan from the FSA office. Currently we have about 50 head of sheep but want to grow into cattle. We have no land and rent everything. The bank wanted about 30% of the total loan in order approve us. We have been doing this with that smallest possible help from banks or any family members. Yet we don't have the means to buy land. I've read in these forums to stay away from FSA loans but we don't have many options. We have had sheep for about 2 years but the FSA loan requires 3 years experience. My husband's family is from out here so he has a few more years than I do into other farming and ranching experience. The FSA loan woman suggested he take me off the loan application which irritates me considerably but if it gets us a loan then I guess there isn't much choice.

My real question is: On the part of the loan application where it asks to list your farming/ranching experience, what are they looking for? Are they looking for a list in perhaps a resume type format?

Thanks

If you're eating 3 meals a day and got a roof over your head, plus increasing livestock numbers, just keep going like you're going. It may seem slow now. The ratios and guidelines banks have in place for commercial lending are as much for the borrowers protection as their own. If you don't qualify for a bank loan, you need to work on the things that would allow you to qualify.

All that being said if you're still determined. I've never applied for an FSA loan, but I have seen it done. There are banks that make loan guarantee's a substantial part of their business, they can make the process much easier. Good Luck!

Larry

 

[sackshowcattle]

The loans are there for people with knowledge but not enough equity for their first loan. They want everything you have learned from your operation. Feeding knowledge, treatment, Equipment ran, Crops you have personally raised and harvested. Just come up with anything you can add as an experience from your operation. Also need to come up with a list of all the equipment you have as that is also an expensive input. The more you have the better cause it means less you need to borrow to be fully operational. Also if family members are willing to sign an paper stating you can use certain equipment until you can make enough profit to purchase your own it helps. Be prepaired to fill out financial statements every 2 years. The program is set up so that as soon as your equity grows enough you will have to refinance with conventional lender. Thats their reason for having so many rules on getting the money.

 

[sackshowcattle]

Almost forgot dont be surprised if you actually have to get 2 loans. They only loan a certain amount and will take a second out behind the conventional lender for the balance.

 

[GMN]

One time I went in and asked my fsa office if there were any loans I could get or programs I would qualify for, I'm a woman, don't ya know they call women disadvantaged at the fsa office??? Right then and there was a big turn off for me in ever doing business with them. Around here, the fsa office helps the people who appear n the paper on a weekly basis, and it goes by where you were born, what your family name is-and all that. I wouldn't want the govt sticking their noses in my business and the paperwork is out of this world. I got great credit, and get much more respect from my banker than I ever would from a govt agency anyways-All this is something you should think about before you sign on the dotted line-

 

[heath]

One time I went in and asked my fsa office if there were any loans I could get or programs I would qualify for, I'm a woman, don't ya know they call women disadvantaged at the fsa office??? Right then and there was a big turn off for me in ever doing business with them. Around here, the fsa office helps the people who appear n the paper on a weekly basis, and it goes by where you were born, what your family name is-and all that. I wouldn't want the govt sticking their noses in my business and the paperwork is out of this world. I got great credit, and get much more respect from my banker than I ever would from a govt agency anyways-All this is something you should think about before you sign on the dotted line-

So...you went in to see if you qualified, and when you found out you were eligible you got mad? :???:

 

[FarmGirl10]

One time I went in and asked my fsa office if there were any loans I could get or programs I would qualify for, I'm a woman, don't ya know they call women disadvantaged at the fsa office??? Right then and there was a big turn off for me in ever doing business with them. Around here, the fsa office helps the people who appear n the paper on a weekly basis, and it goes by where you were born, what your family name is-and all that. I wouldn't want the govt sticking their noses in my business and the paperwork is out of this world. I got great credit, and get much more respect from my banker than I ever would from a govt agency anyways-All this is something you should think about before you sign on the dotted line-

So...you went in to see if you qualified, and when you found out you were eligible you got mad? :???:

Its a major slap in the face to be told your disadvantaged because your a woman.

 

[Isomade]

My husband and I are trying to fill out these forms for a first time farmer loan from the FSA office. Currently we have about 50 head of sheep but want to grow into cattle. We have no land and rent everything. The bank wanted about 30% of the total loan in order approve us. We have been doing this with that smallest possible help from banks or any family members. Yet we don't have the means to buy land. I've read in these forums to stay away from FSA loans but we don't have many options. We have had sheep for about 2 years but the FSA loan requires 3 years experience. My husband's family is from out here so he has a few more years than I do into other farming and ranching experience. The FSA loan woman suggested he take me off the loan application which irritates me considerably but if it gets us a loan then I guess there isn't much choice.

My real question is: On the part of the loan application where it asks to list your farming/ranching experience, what are they looking for? Are they looking for a list in perhaps a resume type format?

Thanks

If you're eating 3 meals a day and got a roof over your head, plus increasing livestock numbers, just keep going like you're going. It may seem slow now. The ratios and guidelines banks have in place for commercial lending are as much for the borrowers protection as their own. If you don't qualify for a bank loan, you need to work on the things that would allow you to qualify.

All that being said if you're still determined. I've never applied for an FSA loan, but I have seen it done. There are banks that make loan guarantee's a substantial part of their business, they can make the process much easier. Good Luck!

Larry

Solid advice!

 

[Miller4526]

Ok, just signed up for this forum deal, hoping I'm typing in the right area. Looking for general advice. Thinking about trying for an FSA loan in the next couple years. Right now I have about 30,000 in assets, 15,000 in student loans. I'm a young woman, been in agriculture my whole life, own 1 cow remnant from 4-H days. Have good credit. When would be the best time to apply? I've been thinking about working for a couple years and saving up for a down-payment and paying off the student loan. But I see people getting dq'd for too good of credit, not enough debt, have too much money....

 

[pdfangus]

Personally I would say go anywhere else for the money....
I work in the building with the local USDA office and have worked in Agriculture all my life.....
I have seen good farmers driven out of business becasue somone in FSA was telling them how to farm and making decisions about the operation.
Some FSA loan officers are very good and understand farming.....
some not so much....

 

[TexasBred]

Ok, just signed up for this forum deal, hoping I'm typing in the right area. Looking for general advice. Thinking about trying for an FSA loan in the next couple years. Right now I have about 30,000 in assets, 15,000 in student loans. I'm a young woman, been in agriculture my whole life, own 1 cow remnant from 4-H days. Have good credit. When would be the best time to apply? I've been thinking about working for a couple years and saving up for a down-payment and paying off the student loan. But I see people getting dq'd for too good of credit, not enough debt, have too much money....

Your credit can never be "too good". You do need some history of having had credit tho and having paid it in full "as agreed" which means on time every month. Work on savings the down payment and paying off the student loans then begin looking for financing. It may take several years but will also give you time to get more experience, develop a history of good steady employment and increase your chances of getting the loan.

 

[denvermartinfarms]

[quote="highgrit And back on the subject of first time farmer FSA loan my other boy is almost 20 and all he wants to do is cut hay, farm and raise cows. Already has 18 moma cows that he got a $5,000 loan from the FSA as a young farmer. i also had that 5,000 loan since your son had one i wanted to ask if when he sold something at a salebarn they had to make the check to him and fsa. i got the loan and did not know about this for about a year until one day they told me when i got my check that fsa had just sent them something saying they had to do it that way. i had sold cattle 2 or 3 times every month since i had got the loan and that was the first i had heard of it at the salebarn they said that they had alot of people that they had to do the same way but i did not know if it was every kind of fsa loan or just this one. all it really did was make it to where i had to drive 45 miles to let the fsa make a copy of the check and look at it. but what realy got us was the cattle i was selling had nothing to do with what that loan was for we feed alot of calves out and sell them and the loan was for 5 cows.the fsa people said it was to make sure i didn't sell the cows i had the loan for so since that i just had them make the check to my dad and didn't have to mess with it. and the only reason i even had the loan was to try and make credit with them .