January 15, 2013, Secretary Vilsack
announced a new microloan program designed to provide start-up costs associated with farming. Those
who qualify could potentially use this capital to grow fruits and vegetables
for local markets.
Dr.Kurt Guidry with the LSU AgCenter
shares his thoughts about this new loan program:
The new microloan program is designed to help
small and family operations, beginning and socially disadvantaged farmers
secure loans under $35,000. This new program is aimed at bolstering the
progress of producers through their start-up years by providing needed
resources and helping to increase equity so that farmers may eventually
graduate to commercial credit and expand their operations. The microloan
program will also provide a less burdensome, more simplified application
process in comparison to traditional farm loans.
For beginning farmers and ranchers, for
instance, the new microloan program offers a simplified loan application
process. In addition, for those who want to grow niche crops to sell directly
to ethnic markets and farmers markets, the microloan program offers a path to
obtain financing. For past FSA Rural Youth Loan recipients, the microloan
program provides a bridge to successfully transition to larger-scale
operations. Producers can apply for a maximum of $35,000 to pay for initial
start-up expenses, essential tools, irrigation, delivery vehicles, and annual
expenses such as seed, fertilizer, utilities, land rents, marketing, and distribution
expenses.
The final rule establishing the microloan
program is expected to be published in the Jan. 17 issue of the Federal
Register. Once that final rule is released, we will have a clearer picture as
to the details of how the program will be implemented.
Contact your FSA office for more details.
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