Farm service loans available Oct. 1
Augusta — Kennebec/Knox/Lincoln County USDA Farm Service Agency Farm Loan Manager Brenda Wells announced that guaranteed farm ownership loan funds for Fiscal Year 2012 have been exhausted. Farmers and ranchers in Maine received $4,665,142 in guaranteed farm ownership loans this fiscal year.
"Fiscal Year 2013 begins on Oct. 1 and we anticipate that guaranteed farm ownership funds will be available in early October," said FLM Wells, in a news release.
FSA guaranteed loans allow lenders to provide agricultural credit to farmers who do not meet the lender's normal underwriting criteria. Farmers and ranchers apply for a guaranteed loan through a commercial lender, and the lender arranges for the guarantee. FSA can guarantee up to 95 percent of the loss of principal and interest on a loan. Guaranteed loans can be used for both farm ownership and operating purposes.
According to FLM Wells, the guaranteed loan limit will increase to $1,302,000 starting on Oct. 1.
"FSA is committed to providing credit through guaranteed and direct loans to eligible farmers and ranchers who need capital to continue or start their agricultural operation," said FLM Wells.
For questions regarding guaranteed farm loans, please contact a lender or the Kennebec/Knox/Lincoln County FSA Office at 622-7847 ext. 2.