FSA Implements Hoeven's Capital for Farmers and Ranchers Act to Increase Limits for Ownership and Operating Loans
Senator Included Legislation in 2018 Farm Bill, Will Work as Chairman of Ag Appropriations Committee to Fully Fund FSA Loan Programs
WASHINGTON – Senator John Hoeven, chairman of the Senate Agriculture Appropriations Committee and a member of the Senate Agriculture Committee, today announced that the Farm Service Agency (FSA) at the U.S. Department of Agriculture (USDA) has increased the limits for its ownership and operating loans, consistent with the Capital for Farmers and Ranchers Act, which Hoeven secured as part of the 2018 Farm Bill. Further, Hoeven will continue to work through his role as Agriculture Appropriations chairman to ensure that the loan programs are fully funded in the coming fiscal years and can meet the expected demand. Specifically, FSA has increased the limits for:
- Guaranteed Operation and Ownership Loans from $1.399 million to $1.75 million.
- Direct Operating Loans from $300,000 to $400,000.
- Direct Ownership Loans from $300,000 to $600,000.
“These loans are crucial in helping farmers maintain and grow their operations by giving them greater flexibility in timing the sale of their crops,” Hoeven said. “Our legislation helped ensure the loan limits reflected the increased input costs for agriculture. We appreciate the FSA for moving forward on these increases, and we will continue to closely monitor the implementation of the farm bill to ensure it serves the best interests of our producers.”
In addition, FSA has made changes to microloans and other emergency loans, including:
- Producers can now receive both a $50,000 Farm Ownership Microloan and a $50,000 Operating Microloan. Previously, microloans were limited to a combined $50,000. Microloans provide flexible access to credit for small, beginning, niche and non-traditional farm operations.
- Producers who previously received debt forgiveness as part of an approved FSA restructuring plan are now eligible to apply for emergency loans. Previously, these producers were ineligible.
- Beginning and socially disadvantaged producers can now receive up to a 95 percent guarantee against the loss of principal and interest on a loan, up from 90 percent.
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