Farmers and Ranchers have many different types of funding available to them to either start or
grow their farms. For the Farmers wanting to start a farm on land they own, they can
pursue credit using traditional methods from a bank or credit bureau.
If the bank will not issue a loan, see if there is a farm credit bureau in your area. These are
agricultural lending cooperatives serving the needs of farmers and agri-businesses. They are part
of the nationwide Farm Credit System, created by Congress in 1916 to provide rural America with a
dependable source of funding for agriculture and agriculture-related enterprises.
The Farm Service Agency (FSA) is another division of the government which makes direct and
guaranteed farm ownership and operating loans to family-size farmers and ranchers who cannot
obtain commercial credit from a bank, Farm Credit System institution, or other lender. FSA
loans can be used to purchase land, livestock, equipment, feed, seed, and supplies. The loans
can also be used to construct buildings or make farm improvements. FSA also helps established
farmers who have suffered financial setbacks from natural disasters, or whose resources are too
limited to maintain profitable farming operations. The FSA can also provide assistance to beginning
farmers as well as socially disabled farmers. For more information on the FSA, visit their website
www.fsa.usda.gov. For those of you who might be leasing
land to farm, most of the above methods of financing might also apply to you. You should check
with your local representatives for eligibility requirements.