Recovery Act allocates millions for direct operating loans to farmers, ranchers
Jack Salava, Acting State Executive Director for USDA's Farm Service Agency in Kansas announced March 10 that nationally FSA will immediately use $145 million of the $173 million provided in the Recovery Act for its Direct Operating Farm Loan Program. Based on average loan size, this funding will provide direct loans to approximately 2,042 farmers of which almost 50 percent are beginning farmers and 10 percent are socially disadvantaged producers.
"These loans will be used to purchase items such as farm equipment, feed, seed, fuel and other operating expenses and will stimulate rural economies by providing American farmers funds to operate," said Salava.
All remaining funding will be allocated through approved loans until all available funds have been expended. Applications are considered on a first come, first served basis with special emphasis placed on beginning and socially disadvantaged applicants. The maximum loan amount is $300,000.
In keeping with the president's goal for the Recovery Act, this loan funding is intended for proper investment into the agricultural sector, to benefit both family farmers and rural economies. The Recovery Act was designed to preserve or create millions of jobs throughout the country and these loans help ensure that recipients remain financially viable and local agri-businesses benefit from direct purchases.
As of March 10, Kansas FSA has funded 63 Direct Operating Loans with $4,386,190 in stimulus funding. Additional loans will be funded daily as funds are available.
FSA loans disbursed with stimulus funding will have an economic impact in Kansas as those dollars reach the local implement dealerships, sale barns, grain elevators, seed and fertilizer distributors, local fuel dealerships and commercial lenders.
For specific information on direct operating loans and other FSA farm loan programs, please visit your FSA county office or our website at http://www.fsa.usda.gov.