Agricultural News
Nowata FSA Office Leads Nation in Microloan Program
Fri, 13 Dec 2013 14:39:29 CST
Chris Beyerhelm, Deputy Administrator for Farm Loan Programs with the Farm Service Agency in Washington, DC, recently visited Oklahoma to present the Excellence in Farm Loans Award to the Nowata FSA Office for their efforts with the USDA Microloan program. Mr. Beyerhelm was joined by Oklahoma FSA Executive Director, Francie Tolle.
Nowata Farm Loan Manager, Mark Huntington, and his loan team obligated 51 Microloans since the program started in January 2013. That number was more than any other office in the Nation, and prompted the visit from Deputy Administrator Beyerhelm.
The USDA Microloan program was established to help small and family operations, beginning and socially disadvantaged farmers secure loans under $35,000. The program is aimed at bolstering the progress of producers through their start-up years by providing needed resources and helping to increase equity so that farmers may eventually graduate to commercial credit and expand their operations. The Microloan program is designed to be a less burdensome, more simplified application process in comparison to traditional farm loans.
"Over half the microloans we made were to new customers, and over 70% were made to Native American producers," explained Huntington. "The program really sold itself, with features like streamlined paper work and less security required."
"By expanding access to credit to those just starting to put down roots in farming, USDA continues to help grow a new generation of farmers," said Beyerhelm. "I applaud the Nowata Farm Loan Team on their efforts to assist so many producers in strengthening their operations with the Microloan program."
FSA has a long history of providing agricultural credit to the nation's farmers and ranchers through its Operating Loan program. In assessing its programs, FSA evaluated the needs of smaller farm operations and any unintended barriers to obtaining financing. For beginning farmers and ranchers, for instance, the new Microloan program offers a simplified loan application process. In addition, for those who want to grow niche crops to sell directly to ethnic markets and farmers markets, the Microloan program offers a path to obtain financing. For past FSA Rural Youth Loan recipients, the Microloan program provides a bridge to successfully transition to larger-scale operations.
Producers can apply for a maximum of $35,000 to pay for initial start-up expenses such as hoop houses to extend the growing season, essential tools, irrigation, delivery vehicles, and annual expenses such as seed, fertilizer, utilities, land rents, marketing, and distribution expenses. As their financing needs increase, applicants can apply for an operating loan up to the maximum amount of $300,000 or obtain financing from a commercial lender under FSA's Guaranteed Loan program.
Producers interested in applying for a Microloan may contact their local Farm Service Agency office, or visit us online at www.fsa.usda.gov/ok.
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