If you have an interest in starting a farm or ranch, owning a farm or ranch, or expanding your current farm or ranch, a Farm Service Agency Loan may be right for you! In the past couple of weeks, you have learned basic information pertaining to these loans and have learned about the loan types that are currently available. We are at Somerville National Bank are standing by to assist you in getting the type of loan that you need to succeed in your endeavors.
Before electing to apply for the FSA loans, you should become knowledgeable about ALL of the loan types that are currently offered by the Farm Service Agency. As stated in a previous installment of this series, Somerville National Bank may not be able to assist with all of these types, but, we will do our best to put you in contact with those that will be able to assist you.
The Farm Ownership Loan
If you currently have a farm or ranch and want to expand it, or, you want to purchase a farm or a ranch, this type of loan is for you! In addition to the purchase and/or expansion, these types of loans are highly beneficial when it comes to constructing and improving the various aspects of a farm or ranch. These types of loans may be used to pay any and all closing costs associated with a land purchase, obtain soil for the land, water conservation methods, and anything else that is designed to pay for the protection of the land.
If your farm and/or ranch has suffered as a result of a natural disaster, you may qualify for emergency loans. This is especially true if the natural disaster has detrimentally impacted your operations. You may use the money from this type of loan to restore that which was damaged or completely replace that which was damaged. You may also use this money to pay production costs, living expenses, and to refinance pre-determined debts.
Operating and Conservation Loans
Operating loans and conservation loans are actually two distinct types of loans that are offered by the Farm Service Agency. An operating loan aids in the purchase of livestock, equipment, and similar items. These loans may also be used to pay for certain types of repairs and to go towards certain types of operating expenses each year. A conservation loan will provide you with the funds that you need to complete a specific type of conservation practice as part of a pre-approved conservation plan.
The Farm Service Agency loans that are available to farmers and ranchers are immense. Before applying, it is important to determine what you need the loan for so that you may apply for the most suitable.
Somerville National Bank is standing by to answer your questions, assist you with the application process, and guide you to the resources that are necessary to keep your farm and/or ranch operating at its highest level of capacity.