Farm Loans

The United States Department of Agriculture (USDA) represents 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 create 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 ensuring self-sufficiency in local communities for future generations.

Guarantees on Land Contracts

The FSA also provides financial assurances for land sale contracts to the beginning or low-income farmers. The vendor has the option of requesting one of the following:

  • Prompt Payment Guarantee: A guarantee of up to three amortized annual installments plus any applicable real estate taxes and insurance.
  • Standard Guarantee: A 90 percent guarantee of the outstanding principal balance under the land contract.

The farm's purchase price cannot exceed the lesser of $500,000 or the property's market worth. The buyer must make a minimum down payment of 5% of the farm's buying price. The interest rate is set at three percentage points over the direct farm ownership loan interest rate in place when the guarantee is granted. Regardless of the term of the land contract, the guarantee period for any plan is ten years. Contract payments must be amortized for at least 20 years. Balloon payments are not permitted throughout the guarantee's 10-year period.

Who Qualifies?

To qualify, you need to:

  • Be a family farmer.
  • Have a satisfactory credit history
  • Be a US citizen, including Puerto Rico, the US Virgin Islands, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, the Republic of Palau, the Federated States of Micronesia, and the Republic of Marshall Islands, a US non-citizen national or a qualified alien under federal immigration law.
  • Be unable to obtain credit elsewhere at reasonable rates and terms to meet actual needs.
  • Have the legal capacity to incur the loan's obligations
  • Not have outstanding unpaid judgments obtained by the United States in any court, excluding judgments filed in US Tax Courts.
  • Not be delinquent on federal debt.
  • They must stay within the time limits for the number of years they can receive FSA help.

Entities may also submit applications. Corporations, cooperatives, joint operations, partnerships, trusts, and limited liability businesses are examples of entities. Their members/stockholders must also meet these conditions. In addition, the entity must be licensed to run a farm or ranch in the state where the land is located. To get targeted support, socially disadvantaged persons must own a majority stake in the entity application.

Working with Ranchers and Farmers

FSA does more than lend money to farmers and ranchers; it also works with them to discover strengths and opportunities for farm productivity and management development. FSA assists farmers and ranchers in identifying alternate possibilities for success. Learning and improving business planning and financial understanding through FSA credit management is the difference between success and failure for many farm families.

The FSA aims to keep farmers and ranchers in business. The FSA may be able to assist direct loan customers whose accounts are distressed or late in the following ways:

  • Loan re-amortization, rescheduling, consolidation, and/or postponement.
  • Loan re-amortization at a lower interest rate.
  • Acceptance of conservation contracts on environmentally significant land in exchange for debt reduction; and
  • Debt forgiveness.

Suppose none of these choices yields a viable farm operating plan. In that case, FSA will work with borrowers to assess whether they are eligible for consideration to keep the homestead and up to 10 acres. Borrowers may be given the option to pay off their debt for less than the total amount owed if that amount represents the market value of the loan collateral. Farms purchased by the FSA are sold at market value, with preference given to the socially disadvantaged and beginning farmers.

Farm Ownership Loans

"We keep America's agriculture booming" using the FSA's Direct 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. The financing is provided through Congressional appropriations as part of the USDA budget.


Microloans are designed to meet the financing needs of small, beginning farmers, niche and non-traditional farm operations 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 growing methods.

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 he or she will endorse the loan applicant, has the necessary skills and experience to oversee your project, and is accessible to assist whenever needed.

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/or 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 valuable resource 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.

American Indian and Alaska Native tribal governments may establish sustainable and community-driven solutions to rural community concerns because of FSA's creative programming. The Farm Service Agency finances and administers this lending program. The financing is provided through Congressional appropriations as part of the USDA budget.