What is a farm loan used for?
A farm loan is for farmers or ranchers who want to purchase, sustain or expand your family farm but don’t have enough credit elsewhere in order to do so. Some of the possibilities include purchasing livestock, equipment, feed, land or more buildings.
What’s the difference between a direct FSA loan and a guaranteed FSA loan?
Direct loans use government money and are serviced by the Farm Service Agency (FSA). Credit counseling and supervision are also provided by FSA to help applicants with evaluation. On the other hand, guaranteed loans are serviced by an agricultural or commercial loan officer at your local community bank.
What are the different types of FSA loans?
There are many different types of FSA loans that you should review before applying. These include farm ownership loans, operating loans, emergency loans, among others. For more information on what each of these loans includes and which loan may be right for you, contact one of our knowledgeable AbbyBank loan officers.
What’s a business plan, and what does it include?
A detailed business plan is submitted when applying to get an FSA loan. This plan shows your goals and plans for the future. It shows that you’ve put serious thought into your business. Some things your business plan should describe includes your vision for your farm/ranch, your assets, your marketing plan and the planning of your expenses.
What happens after my application is submitted?
Your FSA application will be reviewed and soon after, you’ll be informed of any information you missed and need to include. Once all documents are received and reviewed, FSA will then notify the lender within 5 days.
There’s a lot that goes into applying for a farm loan, but we’re here to answer any questions you may have. For a detailed explanation of the FSA loans, application process, and much more, read through this booklet. For information on AbbyBank’s agricultural loans and other farm loan programs besides FSA, visit our agriculture loans page on our website. You can also contact us, and a loan officer will be happy to walk you through it.