|USDA’s Farm Service Agency Announces Guaranteed Loan Limit Increases|
Daniel Robinson, state executive director for USDA’s Farm Service Agency (FSA) in Alabama, announced, as of October 1, 2011, the loan limit for FSA’s Guaranteed Loan Program will increase to $1,214,000. The limit is adjusted annually based on the "Prices Paid to Farmers Index," compiled by the National Agricultural Statistics Service (NASS). The one-time loan origination fee charged on FSA guaranteed loans will also increase, from 1.0 percent to 1.5 percent of the guaranteed portion of the loan, for loans obligated after October 1, 2011.
The Guaranteed Loan Program allows commercial and farm credit lenders to extend credit to qualified applicants, who otherwise would not meet their standard lending criteria.
FSA also offers the Direct Loan Program as an alternative for those unable to obtain financing from commercial credit sources. Direct farm loans are government-funded and made by FSA.
The loan limit for loans under the Direct Program is $300,000 (except for Emergency Loans), increasing the maximum combined guaranteed and direct farm loan indebtedness to $1,514,000.
Farmers interested in applying for a direct loan should contact their local FSA office. To find an FSA office, visit http://offices.sc.egov.usda.gov/locator/app.