The USDA Farm Service Agency provides direct and guaranteed farm ownership and operating loans to family-size farmers and ranchers who cannot access commercial credit. Beginning farmers - typically those with 10 years or less farming experience - may get special consideration through targeted programs, including down payment assistance in some cases. Exact loan limits, guarantee percentages, eligibility details, and priority-sale windows for FSA-owned property change over time; applicants should consult their local FSA county office for current terms and application guidance.

What the FSA offers

The USDA Farm Service Agency (FSA) provides direct and guaranteed farm ownership and operating loans to family-size farmers and ranchers who cannot obtain commercial credit. Loans can fund land purchases, livestock, equipment, seed and inputs, building construction, and approved conservation or improvement projects.

FSA lending fills gaps for new farmers, producers recovering from natural disasters, and established operators who lack access to conventional credit.

Who qualifies as a beginning farmer or rancher

A "beginning farmer or rancher" is generally someone who has operated a farm or ranch for 10 years or less and will materially and substantially participate in the operation. Applicants must meet the program's creditworthiness and eligibility rules, including citizenship or eligible noncitizen status and an acceptable credit history.

Many FSA programs expect applicants to have relevant farming experience; some programs commonly require around three years of active involvement, though specific requirements vary by loan type.

Loan types and limits (overview)

FSA makes both direct loans (funded and serviced by FSA) and guaranteed loans (private lender issues the loan; FSA guarantees a portion). These programs have maximum loan limits, terms, and interest rates that change over time. Exact dollar limits and guarantee percentages are set by USDA and updated periodically. 1

FSA also offers targeted assistance for beginning farmers through special down payment or Youth and Veteran-focused options in certain years or counties. Program details such as down payment percentages, amortization periods, and interest-rate subsidies differ by program and funding cycle. 2

Property owned by FSA and priority sales

When FSA acquires real estate (for example, through loan liquidation), it generally advertises properties for sale. Beginning farmers often receive priority for a limited period after acquisition, allowing them first opportunity to purchase at an appraised market value. The specific priority window and selection rules are set by FSA policy. 3

How to apply

Start with your local FSA county office. Staff can explain current loan limits, eligibility, required documentation, and application windows. You can find your county office on the USDA website or by calling your state USDA/FSA office.

If a commercial lender can offer credit, consider a guaranteed loan: the lender issues the loan and FSA provides a guarantee to reduce lender risk.

Practical tips

  • Prepare a realistic business plan and cash-flow projections.
  • Gather personal and farm financial records, tax returns, and references.
  • Discuss all available program options with an FSA loan officer before applying.
Note: This article preserves the FSA's core mission but omits definitive dollar amounts and exact program terms because those figures change regularly; verify current limits and terms with your local FSA. 4
  1. Confirm current FSA direct and guaranteed loan maximum dollar limits and the latest interest rates.
  2. Verify specific down payment assistance program names, allowable percentages, and term lengths for beginning farmers.
  3. Confirm whether FSA programs commonly require three years of prior farming experience for specific loan types.
  4. Verify the current priority window (e.g., number of days) and selection procedures FSA uses when selling FSA-owned properties.

FAQs about Farm Loans

Who is a beginning farmer for FSA purposes?
A beginning farmer is generally someone who has operated a farm or ranch for 10 years or less and who will materially and substantially participate in the operation. Other eligibility criteria, such as creditworthiness and citizenship, also apply.
What can FSA loans be used for?
FSA loans can fund land and livestock purchases, equipment, seed and inputs, building construction, approved conservation projects, and other operating expenses depending on the loan type.
How do direct and guaranteed loans differ?
Direct loans are made and serviced by FSA. Guaranteed loans are issued by a commercial lender but receive an FSA guarantee to reduce lender risk - useful when a borrower can get partial commercial credit.
Does FSA help with down payments?
FSA has programs that offer down payment assistance to beginning farmers in certain circumstances. Program terms and availability vary by year and funding, so check with your local FSA office.
Where do I apply?
Start at your local FSA county office. Staff will explain current program terms, required documents, and application steps. County office locations are listed on the USDA website.