Officials from the USDA’s Farm Service Agency have announced a portion of its farm loan program funds are specifically allocated for minority and women producers. 

“While FSA farm loans are available to all qualified applications, by setting aside funds specifically for minorities and women, it ensures that they will receive a portion of available funds,” said Judy Olson, FSA’s Washington State Executive director. 

According to Olson, loan funds can be used to purchase farms, livestock and equipment. Funds can also be used to operate the farming business, build or repair farm service buildings, pay for soil and water conservation practices and in some cases refinance debts. FSA offers both direct and guaranteed loans. 

For direct loans made by FSA to purchase a farm, terms may extend to 40 years with a current interest rate of five percent. If an applicant is able to obtain financing from a private lender equivalent to 50 percent or more of the total funds needed to jointly finance the purchase of the farm, the interest rate on the FSA direct loan would be fixed at five percent. The FSA guaranteed loans are made by banks or other lenders, which FSA guarantees up to 90 percent of any loss. The guaranteed loan program includes both operating and real estate loan programs.

Local farmers interested in FSA programs can contact Lisa Ruff, Yakima County FSA Farm Loan manager at (509) 454-57466, extension 2.