The Daily Item
MIDDLEBURG — USDA’s Farm Service Agency (FSA) in Pennsylvania, Snyder/Union/Northumberland counties remind producers that FSA offers specially targeted farm loans known as Socially Disadvantaged (SDA) and Beginning Farmer loans. These loan programs are designed to help farmers purchase and operate family farms.
Direct loans are made to applicants by FSA and include both farm operating and farm ownership loans. Repayment terms for direct operating loans depend on the collateral securing the loan and usually run from 1 to 7 years. The repayment terms for direct ownership loans can be as long as 40 year. Interest rates for direct loans are set periodically according to the government’s cost of borrowing. The down payment loan program required the applicant to provide a minimum down payment of 5 percent in cash and then the loan cannot exceed 45 percent of the lesser of the purchase price, the appraised value of the farm to be acquired or $500,000.
Applicants must meet the eligibility requirements for a given program before FSA can extend program benefits. For additional information or applications for all FSA direct loan programs, contact your local FSA Office at 405 W. Market St., Middleburg, (570) 837-0007.