Farm Service Agency offers joint financing option on direct farm ownership loans |

Farm Service Agency offers joint financing option on direct farm ownership loans

Craig Press staff report

The USDA Farm Service Agency’s Direct Farm Ownership loans are a resource to help farmers and ranchers become owner-operators of family farms, improve and expand current operations, increase agricultural productivity and assist with land tenure to save farmland for future generations.

Depending on the applicant’s needs, there are three types of Direct Farm Ownership Loans: regular, down payment and joint financing. FSA also offers a Direct Farm Ownership Microloan option for smaller financial needs up to $50,000.  

Joint financing allows FSA to provide more farmers and ranchers with access to capital. FSA lends up to 50-percent of the total amount financed. A commercial lender, a state program or the seller of the property being purchased provides the balance of  the loan funds, with or without an FSA guarantee. The maximum loan amount for a Joint Financing loan is $300,000, and the repayment period for the loan is up to 40 years.

To be eligible, the operation must be an eligible farm enterprise. Farm ownership loan funds cannot be used to finance non-farm enterprises, and all applicants must be able to meet general eligibility requirements. Loan applicants are also required to have participated in the business operations of a farm or ranch for at least three years out of the 10 years prior to the date the application is submitted. The applicant must also show documentation that his or her participation in the business operation of the farm or ranch was not solely as a laborer.  

For more information about FSA Loan programs, call the FSA office Craig Service Center, 145 Commerce St., at 970-824-3476, Ext. 105, or or visit