USDA Farm Service Agency (FSA) Farm Loan Chief Stuart Shelstad, announced that guaranteed farm ownership loan funds for Fiscal Year 2012 have been exhausted. Farmers and ranchers in Minnesota received $68,419,302 in guaranteed farm ownership loans this fiscal year.
"Fiscal Year 2013 begins on October 1, 2012, and we anticipate that guaranteed farm ownership funds will be available in early October," said Shelstad.
FSA guaranteed loans allow lenders to provide agricultural credit to farmers who do not meet the lender's normal underwriting criteria. Farmers and ranchers apply for a guaranteed loan through a commercial lender, and the lender arranges for the guarantee. FSA can guarantee up to 95 percent of the loss of principal and interest on a loan. Guaranteed loans can be used for both farm ownership and operating purposes.
According to Shelstad, the guaranteed loan limit will increase to $1,302,000 starting on October 1, 2012.
"FSA is committed to providing credit through guaranteed and direct loans to eligible farmers and ranchers who need capital to continue or start their agricultural operation," said Shelstad.