Agriculture Loans

The United States Department of Agriculture (USDA) serves agriculture and rural communities throughout the United States. It partners with private and community-based groups and leading financial institutions to offer significant capital for rural enterprises as part of its purpose to develop local economies and generate jobs. Loans of up to $25 million are available through various secure, government-backed programs—loans that Royale Capital can arrange on your behalf. This money helps rural enterprises and job growth in the short term while also ensuring self-sufficiency in local communities for coming generations.

FSA provides direct and guaranteed farm ownership and operating loans to family-sized farmers and ranchers who cannot access commercial credit from a bank, Farm Credit System institution, or another lender. Loans from the FSA can be used to buy land, animals, equipment, feed, seed, and supplies. Loans can also be used to build structures or improve farms.

Examples of Agriculture Loans

Operating Farm Loan

Direct Farm Operating Loans from the FSA are a vital resource for starting, maintaining, and strengthening a farm or ranch. FSA's Direct Farm Operating Loans provide a vital entry point into agricultural output for new agricultural producers by paying the cost of a farm operation. All FSA Direct Operating Loans, with a maximum loan value of $400,000, are sponsored and serviced by the Agency through local Farm Loan Officers and Farm Loan Managers. Congressional appropriations provide the money as part of the USDA budget.

Farm Ownership Loans

Farm Ownership Loans provide up to 100 percent financing. They are a valuable resource for farmers and ranchers looking to buy or expand family farms, improve and expand current operations, increase agricultural productivity, and assist with land tenure to save farmland for future generations. All FSA Direct Farm Ownership Loans, with a maximum loan amount of $600,000 ($300,150 for Beginning Farmer Down Payment), is financed and serviced by the Agency through local Farm Loan Officers and Farm Loan Managers. Congressional appropriations provide the money as part of the USDA budget.


Microloans are designed to meet the funding requirements of small, beginning farmers, niche and non-traditional farm operational processes such as truck farms, farms that participate in direct marketing and sales such as farmers' markets, CSAs (Community Supported Agriculture), restaurants, and grocery stores, or farms that use hydroponic, aquaponic, organic, and vertical cultivation techniques.

Youth Loans

Individual young people can apply for FSA loans to create and run small-scale income-generating initiatives as part of their membership in 4-H clubs, FFA, a Tribal youth group, or another agricultural youth organization. The project funded by an FSA Youth Loan must give the young person the chance to gain experience and education in agriculture-related skills. The Youth Loan application requires a reference from a project adviser who confirms that they will endorse the loan applicant, has the necessary skills and experience to oversee your project, and is accessible to assist whenever necessary.

If you are between the ages of 10 and 20 at the time of loan closing, you must have the approval of your parent(s) and legal guardian(s). Young people who apply for a Youth Loan are directly liable for repayment. A co-signer is only necessary if the project is likely to have trouble repaying the loan or not meeting security standards.

Native American Tribal Loans

The FSA's Indian Tribal Land Acquisition Loan Program is a precious asset for assisting Tribes in acquiring additional property within the reservation to advance and expand current operations, provide financial opportunities for Native American communities, increase agricultural productivity, and save farmland for future generations. Because of FSA's creative programming, the American Indian and Alaska Native tribal governments may establish sustainable and community-driven remedies to rural community concerns. The Farm Service Agency finances and administers this lending program. The funding is provided through Congressional appropriations as part of the USDA budget.

The Highly Fractionated Indian Land Loan Program assists Tribes, Tribal entities, and Tribal members in resolving issues caused by fractionated interests in tribal lands. Current agricultural enterprises can improve and expand access to USDA programs, increase agricultural output, and safeguard Tribal farmland for future generations through land consolidation.

The Agency's revolving loan funds are used to fund this loan program, handled by an authorized intermediary lender.

Emergency Loans

When a tornado, flood, or drought occurs, or the Secretary of Agriculture imposes a quarantine, or when other natural catastrophes occur, FSA's Emergency loan program is available to assist eligible farmers and ranchers in rebuilding and recovering from substantial losses. The Emergency loan program is activated when the Secretary of Agriculture declares a natural catastrophe or when the President declares a natural disaster or emergency under the Stafford Act.

These loans assist farmers who suffer qualified farm-related losses due to a catastrophe in a county declared or designated as a primary disaster or quarantine region. Farmers in counties adjacent to the declared, designated, or quarantined area may also be eligible for Emergency loans.

A 30 percent decline in a principal crop in a designated or contiguous county is required for production losses. Quality losses, such as earning a 30% discount on flood-damaged crops, may also be eligible for aid.

Targeted Loan Funding

While the FSA is dedicated to representing all farmers and ranchers, by statute, the FSA directs a portion of all Guaranteed loan funds, Direct Operating and Direct Farm Ownership loan funds, Microloan funding, and Youth loans to historically underserved farmers and ranchers, which include:

  • Women
  • African American
  • Native Alaskans
  • Native Hawaiians
  • Pacific Islanders
  • American Indians
  • Hispanics
  • Asians
  • Pacific Islanders

Beginning Farmers and Ranchers Loans

While the FSA is devoted to all farmers and ranchers, there is a particular emphasis on the credit needs of farmers and ranchers in their first ten years of operation. Each year, the FSA targets a proportion of its lending by allocating a share of all loan monies to beginning farmer and rancher companies. Except the Direct Farm Ownership Down Payment Loan, the Beginning Farmer classification does not correspond to a specific loan program; instead, it refers to a specific, targeted financing source.