government loans

[dac1]

how do you get government loans saw where you talking about fencing and other stuff tell me .links ?

 

[dj]

I think most of what you see refered to are cost share
programs not loans? But I don't know about either. sorry.
But Welcome to the board.

 

[somn]

I obtained my first loan thru the FSA it was a 40 year 5.12% fixed interest loan. I was required to have 10% down and $200,000.00 came from FSA and the remainder of the loan came from a traditional lender with a guarantee from FSA. Some advice before you go to apply for a loan you need to understand going in to the process that the goverment will tell you how you are going to do everything I mean everything. You do it their way or you don't get the loan. After getting the loan you continue to do it their way. This may seem horrible but it isn't so bad. I had no other alternative. My family had no money, a traditional lender would just show me to the door. It was my only choice if I indeed wanted to do what I had in mind. I will recommend this program to anyone in the same position as I was in at the time( I was young, ambitious, and almost pennyless.) I think it is a wonderful program. One other thing when the lending agent tells you that your wife will need to learn how to can meat and vegetables he is not kidding you he is serious. You had better find some kerr canning jars.

http://www.fsa.usda.gov/pas/publication ... loan04.htm

 

[3MR]

I have received a Farm ownership loan and operating loans. There is a lot of paperwork, but its not impossible to do. My experience has been, they are very helpful in completing the forms and developing a farm plan you can work with. Once the plan is developed you need to adhere to it, but its also reletively easy to have it adapted to circumstances. My FSA agents, Grady County, Oklahoma, will bend over backwards to help you. They have taken care of stuff for me, way outside the scope of their official duties, without me asking, just because they know I am out of the country and would have problems doing it myself.

So to answer yoru original question. The first step is to go talk to your county FSA agent and tell him what you would like to do and begin developing a relationship.

 

[denoginnizer]

I obtained my first loan thru the FSA it was a 40 year 5.12% fixed interest loan. I was required to have 10% down and $200,000.00 came from FSA and the remainder of the loan came from a traditional lender with a guarantee from FSA. Some advice before you go to apply for a loan you need to understand going in to the process that the goverment will tell you how you are going to do everything I mean everything. You do it their way or you don't get the loan. After getting the loan you continue to do it their way. This may seem horrible but it isn't so bad. I had no other alternative. My family had no money, a traditional lender would just show me to the door. It was my only choice if I indeed wanted to do what I had in mind. I will recommend this program to anyone in the same position as I was in at the time( I was young, ambitious, and almost pennyless.) I think it is a wonderful program. One other thing when the lending agent tells you that your wife will need to learn how to can meat and vegetables he is not kidding you he is serious. You had better find some kerr canning jars.

http://www.fsa.usda.gov/pas/publication ... l/begloan0
4.htm

If I had to farm someone else's way I would choose not to farm.In my mind , one of the best parts of farming is being able to make ones on decisions and seeing the results , wheter it is positive or negative.

 

[3MR]

You dont have to farm thier way. You come up with a plan together. All they do is make sure your plan will work. They are very flexible, but considering they are loaning you the money based upon your ability to pay it back by farming they have every right to make sure you have a sound plan. Its no different than getting a loan for any other type of business. You have to submit a business plan before any bank or financial institute will consider it.

Also, If you could finance a farm any other way, they woulddnt be loaning you the money anyway.

 

[Herefordcross]

I'm curious as to what they use as collateral on these "operating" loans. Cattle, machinery or what??

 

[brierpatch1974]

Not sure if its true or not but I was told by someone that these loans can be used for animals, equipment, and all that but can not be used to buy land or more land. Is this true or does it all just depend on the business plan?

BP

 

[dun]

From my understanding it can;t be used to buy land. Thye only people I know that have used it bought cattle with it. The gov doesn;t actually loan you the money, they gaurantee the loan to banking institution. That may have all changed but that was my understanding from a couple of years ago.
Best source of information is still your FSA office.

dun

 

[rkm]

You can borrow money from FSA real estate, especially first time farmers.

I agree that some of their ideas and practices are sometimes petty and stupid, but to me farming their way is still better than not farming at all. If you have a job, you have to do it someone elses way.

Its a way to get started, and if you make progress after a couple of years go to another lender and let FSA guarantee the loan. Then you can do it your way.

 

[somn]

I'm curious as to what they use as collateral on these "operating" loans. Cattle, machinery or what??

They put a lien against your crops, livestock, and sometimes machinery.

 

[somn]

Not sure if its true or not but I was told by someone that these loans can be used for animals, equipment, and all that but can not be used to buy land or more land. Is this true or does it all just depend on the business plan?

BP

My first loan was used to purchase 319 acres of bare farmland.

 

[somn]

From my understanding it can;t be used to buy land. Thye only people I know that have used it bought cattle with it. The gov doesn;t actually loan you the money, they gaurantee the loan to banking institution. That may have all changed but that was my understanding from a couple of years ago.
Best source of information is still your FSA office.

dun

$200,000.00 came directly from the USDA FSA office. The balance of my loan came from a traditional lender with a guarantee from FSA. I put 10% down in cash.

 

[somn]

This may be a better link for information than the previous one I posted.

http://www.fsa.usda.gov/dafl/directloans.htm

 

[brierpatch1974]

Dang fella's you getting my hopes up. With my Wife teaching and me about to finish school myself I may have other options than waiting and saving for 30 years.

BP

 

[dac1]

thanks for all the info .

 

[somn]

I obtained my first loan thru the FSA it was a 40 year 5.12% fixed interest loan. I was required to have 10% down and $200,000.00 came from FSA and the remainder of the loan came from a traditional lender with a guarantee from FSA. Some advice before you go to apply for a loan you need to understand going in to the process that the goverment will tell you how you are going to do everything I mean everything. You do it their way or you don't get the loan. After getting the loan you continue to do it their way. This may seem horrible but it isn't so bad. I had no other alternative. My family had no money, a traditional lender would just show me to the door. It was my only choice if I indeed wanted to do what I had in mind. I will recommend this program to anyone in the same position as I was in at the time( I was young, ambitious, and almost pennyless.) I think it is a wonderful program. One other thing when the lending agent tells you that your wife will need to learn how to can meat and vegetables he is not kidding you he is serious. You had better find some kerr canning jars.

http://www.fsa.usda.gov/pas/publication ... l/begloan0
4.htm

If I had to farm someone else's way I would choose not to farm.In my mind , one of the best parts of farming is being able to make ones on decisions and seeing the results , wheter it is positive or negative.

My passion for farming must have been greater than your passion for farming is. That was the only option available to me so I used it. Everyone one comes into this world the same way NAKED. If the day after a person is born they are rich I guess family money must be nice. The day after I was born I was wearing a cloth diaper which is better than naked but I was still poor. I did what I could and I will recommend it to anyone. and I second everything rkm said.

 

[denoginnizer]

I love to farm but I have not gotten where I am today by letting others tell me how to captain my ship. If the loan works for you I am glad for you. I wasnt trying to say that a gov loan was bad for others , I was just stating that it wouldnt work for me. Hope that you can understand.

 

[3MR]

They dont captain your ship, they just want you to log a flight plan. :lol:

 

[Herefordcross]

Good one, I prefer to be the navigator and delegate the work to others. Oh yeah that was in my past life I guess or maybe in the next one.