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FSA Direct Farm Ownership Loans

Open Date:


Close Date:


Eligible Recipients:

  • General Public
  • Private Sector

Program Purpose:


Reserved for Energy


Upcoming Milestones:

Upcoming Meetings & Events by state can be found here: https://www.fsa.usda.gov/news-room/meetings-events/index

Funded by:

U.S. Department of Agriculture


What does this program do?
Farm Service Agency (FSA) Direct Farm Ownership Loans may be used to purchase a farm, enlarge an existing farm, construct new farm buildings, and/or improve structures, pay closing costs, and promote soil and water conservation and protection.

Who may apply for this program?
General eligibility requirements include:

  • Must not have Federal or State conviction(s) for planting, cultivating, growing, producing, harvesting, storing, trafficking, or possession of controlled substances.
  • Possess the legal capacity to obtain a loan.
  • Have an acceptable credit history.
  • Be a United States citizen, non-citizen national or legal resident alien of the United States, including Puerto Rico, the U.S. Virgin Islands, Guam, Amerian Samoa, and certain Pacific Trust Territory.
  • Unable to obtain sufficient credit elsewhere, with or without an FSA loan guarantee.
  • Have no previous debt forgiveness by the Agency, including a guarantee loan loss payment.
  • Not be delinquent on any Federal debt, other than IRS tax debt, at the time of loan closing.
  • Not be ineligible due to disqualification resulting from Federal Crop Insurance violation.
  • Be able to show sufficient farm managerial experience through education, on-the-job training and/or general farm experience, to assure reasonable prospect of loan repayment ability.
  • Must be the owner-operator of a family farm after loan closing.

Are there other requirements?
There are 3 different types of qualifications for a direct farm ownership loan which need to be met:

  • Eligible farm enterprise;
  • General eligibility requirements; and
  • Farm management experience.

FSA’s Direct Farm Ownership loans are used to:

  • Buy a farm or ranch.
  • Enlarge an existing farm or ranch.
  • Make a down payment on a farm.
  • Purchase of easements.
  • Construct, purchase or improve farm dwellings, service buildings or other facilities.
  • Promote soil and water conservation and protection.
  • Pay loan closing costs.

What are the rates and terms?

  • The maximum loan amount is $600,000.
  • The term is up to 40 years and interest rates are fixed. The interest rate charged is always the lower rate in effect at the time of the loan approval or loan closing for the type of loan wanted. Interest rates are calculated and posted the 1st of each month.
  • All FSA Direct Farm Ownership Loans are financed and serviced by the Agency through local Farm Loan Officers and Farm Loan Managers.
  • The funding comes from Congressional appropriations as part of the USDA budget.

Funding Details

Funding Source:
Funding Type:
Total Amount Available:
Limit per Applicant:
Estimated Awards:

Applicant Guidance

Contact Information

Contact your Local FSA Service Center, at: https://farmers.gov/working-with-us/service-center-locator.

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