For Individuals
FARM LOANS
Application
Quick Guide
The USDA Farm Loan Programs are administered by the Farm Service
Agency (FSA), an agency of USDA. USDA is an equal opportunity provider,
employer, and lender. Updated June 2019
Use this guide to better
understand how to
prepare for your first visit
to a Service Center and
apply for a loan. In this
guide you will find:
How do you use this guide?
Information About the Loan Process ...............................................Page 2
Information on Partnering With A Loan Oicer ..........................Page 3
Direct Farm Loans Overview ................................................................Page 4
Eligibility Requirements ........................................................................Page 5
FSA Required Forms Checklist ..........................................................Page 6
Additional Documentation Checklist ...............................................Page 7
Resources if You Still Need Help ....................................................... Page 8
Loan Process
Here’s what to expect on your Farm Loan journey.
Work on Your Application
• Review loan eligibility requirements.
• Develop a farm business plan and farming goals.
• Determine which USDA Service Center to visit.
• Discuss the requirements with a Loan Oicer.
• Complete the required FSA forms.
• Gather required application documentation.
Finalize and Submit Your Application
Notification of Complete Application
Farm Visit
A Loan Oicer will visit you at your farm.
They may conduct an environmental
review and chattel appraisal (if applicable).
Receive Loan Decision Letter by Mail
Receive the Money
Funds will be disbursed by direct deposit or
through the closing agent.
Loan Servicing
Follow the terms of your loan agreement.
Make sure to account for all loan funds
(including providing receipts for items you buy).
Grow Your Operation!
Loan Denial
Discuss the loan decision
and further options with
a Loan Oicer.
Approval Decision Application
Approved Denied
Verify Adequate Security
The FSA will assess the value of your assets
and/or FSA may request an appraisal (if applicable).
Close Loan
Review all closing requirements and accept the
loan conditions presented in the approval letter.
Once an FSA representative or a closing agent
receives all your documents, they will schedule
your loan closing.
Notification of
Incomplete Application
If your application is incomplete, a Loan
Oicer will tell you what is missing.
Next, provide the missing information
to make the application complete.
Application Quick Guide | Individual 2
Partner With A Loan Oicer
Service Center employees are here to assist you throughout
your loan journey.
Loan Oicers will:
• Assist you during the entire loan process.
• Provide supervision throughout the life of
the loan.
• Give feedback and suggestions on your
business operating plan.
• Work with you to develop opportunities
to build your business and move on to a
traditional form of credit.
• Work with you in person, via email, and
on the phone.
Are you ready to connect with a Loan Oicer?
Find your local Service Center online at: https://www.farmers.gov/service-locator
or contact an agriculture representative to find out where a Service Center is located.
Follow These Steps:
Call before visiting a Service Center. If the Service Center you call does
not have Farm Loan Programs employees, you will be directed to a Service
Center that does.
Call to schedule an appointment with a Loan Oicer at a Service Center. (Walk-ins
are welcome, but Loan Oicers may be unavailable at that time.)
1
2
Application Quick Guide | Individual 3
Direct Farm Loans
Farm Loan Programs oer access to funding for a wide range
of farmer and rancher needs, from purchasing land to buying
equipment and/or livestock.
All FSA Direct Farm Loans are funded and serviced by the FSA through local Loan Oicers.
The funding comes from congressional appropriations as part of the USDA budget. Interest
rates are calculated monthly and are posted on the 1st of each month; view them here:
https://www.fsa.usda.gov/farmloans.
Loan Limitations
Funds cannot be used to finance exotic birds, tropical fish, dogs, or horses used for racing, pleasure,
show, and boarding or any other enterprises not typically associated with human consumption, fiber
or draft use.
What is the dierence between Farm Ownership and Farm Operating Loans?
Operating Loans
Equipment, Feed,
Livestock, etc.
The maximum loan amount is $400,000.
Used to pay costs associated with
reorganizing a farm to improve
profitability; purchase livestock, including
poultry; purchase farm equipment; pay
farm operating expenses, make minor
improvements or repairs to buildings;
refinance certain farm-related debts,
excluding real estate; aid in land and
water development, use, or conservation;
and pay loan closing and borrower
training costs.
Ownership Loans
Land Purchase or
Construction Project
The maximum loan amount is $600,000.
Used to buy a farm; enlarge an existing
operation; make a down payment on a
farm; purchase easements; construct,
purchase or improve farm dwellings,
service buildings or other facilities
and improvements essential to the
farm operation; promote soil and water
conservation and protection; and pay
loan closing costs.
Generally, you need experience operating
a farm-related business.
Application Quick Guide | Individual 4
Eligibility Requirements
Here are general eligibility requirements you need to meet.
General eligibility requirements include:
• Not having federal or state conviction(s) for planting, cultivating, growing, producing,
harvesting, storing, traicking, or possession of controlled substances.
• The legal ability to accept responsibility for the loan obligation.
• 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, American Samoa, and certain former
Pacific Trust Territories.
• Being unable to obtain suicient credit elsewhere, with or without an FSA loan guarantee.
• No delinquency on a federal debt, other than IRS tax debt, at the time of loan closing.
• Not being ineligible due to disqualification resulting from a federal crop insurance violation.
• Have suicient managerial ability to assure a reasonable expectation of loan repayment.
Note: There may also be additional requirements that your Loan Oicer will discuss with you.
Application Quick Guide | Individual 5
FSA Required Forms
These are the forms the FSA needs to complete your
loan application.
Check the boxes below as you fill out each form to ensure a complete application. You may need
other forms and may be able to replace some forms with comparable farm records. A Loan Oicer
can provide you with an application package with the comprehensive application requirements.
Note: A signature is required for every form.
Form Number and Name
FSA-2001: “Request for Direct Loan Assistance”
FSA-2002: “Three-Year Financial History”
FSA-2003: “Three-Year Production History”
FSA-2004: “Authorization to Release Information”
FSA-2005: “Creditor List”
FSA-2006: “Property Owned and Leased”
FSA-2037: “Farm Business Plan Worksheet” (Balance Sheet)
FSA-2038: “Farm Business Plan Worksheet” (Projected/Annual Income Expense)
FSA-2302: “Description of Farm Training and Experience”
AD-1026: “Highly Erodible Land Conservation and Wetland Conservation Certification”
The Authorized Agency Official will assess your farm’s environmental compliance and
recommend next steps, which may include additional forms and a visit to your local county office.
There are online resources on the last page of this document that may help answer additional
questions you may have about these forms or the application process.
Application Quick Guide | Individual 6
Additional Documentation
These are some of the items you will need to complete
your application.
Check the boxes below as you gather each item to ensure a complete application.
Item Name
Credit report fee, using personal or bank check, made payable to the Farm Service Agency
Complete tax returns, including Schedule F if available, for the past 3 years
Copies of all leases, contracts, options, and other agreements
Proof of legal name such as a driver’s license or Green Card
Verification of income, debts, and assets (for example, recent pay stubs and statements
for credit cards, loans, and bank accounts)
If you are applying for a Farm Ownership Loan, please provide these items, too.
Legal descriptions of all farm property owned or to be acquired
Copy of ratified purchase agreement
Construction plans (if applicable)
Note: Complete legal descriptions are usually found in a deed from the courthouse.
Application Quick Guide | Individual 7
Still Need Help?
The following online resources can help answer
your questions.
Talk to a Loan Oicer, local agriculture representative, or community organization to learn more.
If you do not have internet access, a Loan Oicer can send you resources and provide state-specific
resources. Also, consider getting in touch with your state’s agricultural extension.
Farmers.gov
https://www.farmers.gov
Farmers.gov provides farmers, ranchers,
private foresters, and agricultural producers
with educational materials, engagement
opportunities, and business tools to increase
eiciency and productivity.
Find Your Local Service Center
https://www.farmers.gov/service-locator
Use this online tool to search for your Farm
Service Agency, Natural Resources Conservation
Service, and Risk Management Agency Service
Centers by state and county.
FSA Farm Loan Programs
https://fsa.usda.gov/farmloans
In-depth information about everything related to
the FSA Farm Loan Programs including forms.
Assistance for Socially Disadvantaged
Farmers and Ranchers
https://www.fsa.usda.gov/minority-and-women-
farmers-ranchers
FSA continues to develop innovative loan products
and initiatives to improve its ability to serve
traditionally underserved farmers and ranchers.
View this information online or talk to a Loan
Oicer to learn about initiatives that may be in
place to assist you.
New Farmers Resources
https://newfarmers.usda.gov
Find the resources you need to get started or
personalize your search with the Discover Tool.
Make a Farm Business Plan
https://newfarmers.usda.gov/make-farm-
business-plan
This is your roadmap to start-up, profitability,
and growth, and provides the foundation for your
conversation with USDA about how our programs
can complement your operation. Your Loan Oicer
can provide guidance on how to develop the plan
as well.
Getting an FSA Farm Number
https://newfarmers.usda.gov/first-steps
A farm number will allow you to access key USDA
programs and vote in county Farm Service Agency
elections. Call your Service Center to learn more
about how to get an FSA Farm Number.
Application Quick Guide | Individual 8