It's down to farm loans or bust!

[NECowboy]

High cotton.

"We were walkin in high cotton, old times there are not forgotten, those fertile fields are never far away." Love that song, Alabama was here last summer at a local county fair, put on a hell of a show!

 

[J&D Cattle]

The reason USDA loans are attractive is that the interest rates are 2.8%-3.5%. That is way less than a bank or credit union will do. They were 6.5%. plus the loans are due monthly they are due once a year from when you close the deal. So we pay $146 at 3.5% for 40 yr = $6700 a year. The cattle loan is $10,000 for 7years at 2.8% = $1,500 a year

Bigfoot: the USDA does not require any collateral to get a loan. We did not have to put our house or the vehicles or anything like that, so yes if the world goes belly up a person would be able to "walk away from their debt". Your credit score would be shot for 7 years, but I guess that may not really matter.

The local FSA office that we deal with would definitely file a deed of trust on your personal residence if you were purchasing a farm that was on a separate premise. Somebody else said it as well but to get a direct FSA loan you have to be denied by a traditional lending institution for one reason or another. All banks have different lending policies so some of the denials can be rather minor. Some banks also just don't want to work with FSA and will deny to get the client approved direct. I would rather work with FSA and in doing so they give me a 90% guarantee on the loan.