Farm Service Agency increases guaranteed loan limits
The New River Valley USDA Farm Service Agency (FSA) announced Thursday all guaranteed farm ownership loan funds for Fiscal Year 2012 have been exhausted.
Virginia farmers and ranchers received $13 million in guaranteed farm ownership loans during the previous fiscal year. Farm Loan Manager Mistry Crigger said in a news release she anticipates guaranteed farm ownership funds for Fiscal Year 2013 to be available in early Oct.
According to Crigger the guaranteed loan limit will increase from $1,214,000 to $1,302,000 beginning on Oct. 1. The FSA, Crigger said, provides credit through guaranteed and direct loans to eligible farmers and ranchers who need capital to continue, or start, their agricultural operation.
FSA guaranteed loans allow lenders to provide agricultural credit to farmers who do not meet the lenders’ normal underwriting criteria, the release said. Farmers and ranchers apply for a guaranteed loan through a commercial lender, and the lender arranges for the guarantee.
According to the release, the FSA can guarantee up to 95 percent of the loss of principal and interest on a loan. The loans can be used for both farm ownership and operating purposes.
For more information about guaranteed loans, call the New River Valley FSA office at 382-3961, ext. 2.
–Mike Shaw, The Burgs
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