The U.S. Department of Agriculture announced it is improving farm loans. Beginning farmers and family farmers will have expanded eligibility and increased lending limits.
USDA is bumping up the borrowing limit for a microloan from $35,000 to $50,000 simplifying the lending process, changing experience requirement, and expanding eligible business entities.
USDA Deputy Secretary Karen Harden says the new flexible loans are from the 2014 Farm Bill and designed to help small to midsize farming operations as well as new farmers..
The loan changes become effective starting November 7.
Producers can put in suggestions on the new process through December 8.
Since 2010 USDA has made a record amount of farm loans through the Farm Service Agency, more than 165,000, totaling 23 billion dollars. More than 50 percent of those loans go to beginning farmers.