Building a Better 

Future for

Farmworkers
How USDA Can Help

Farmworkers, who perform some of the most exhausting, back-breaking labor in the United States, are also

among the lowest paid workers. Their lives are made even

more difficult by a lack of resources most Americans take

for granted.

Housing conditions for farm laborers lag far behind

those for other Americans. In some cases, they live in

houses that are little better than shacks. For migrant

workers, the picture is particularly grim. They are sometimes forced to sleep in their vehicles, in tents, or completely outdoors. Even when shelter is available, it is often

dangerous and unsanitary. Farm laborers also have little

access to retail stores and other vital services, such as

health care and schools.

Farmworker families with young children face especially difficult choices. If one parent stays home with the children, the family forfeits badly needed income. Without

access to affordable child care, farmworker families might

feel compelled to take their children into the fields while

they work, a choice fraught with difficulties for the parent

and, often, danger for the child.

However, help for improving farmworker living conditions is available. USDA Rural Development offers programs to help public and nonprofit organizations build

farm labor housing as well as child-care centers, schools,

and health-care facilities. Through loans, loan guarantees,

and grants, this assistance has helped improve the lives of

farmworkers across the United States.

USDA works with organizations to help determine the

An example of modern farm labor housing constructed with

USDA/Rural Development’s help.
most efficient use of available resources to achieve their

objectives. Often, this includes leveraging funds in partnership with businesses or with other organizations. Rural

Development officials can help locate other assistance and

resources. They work step by step with local groups and

their partners to help develop plans that meet communities’ specific requirements and desires, and then to realize

those plans as effectively and efficiently as possible.

USDA’s goal is to provide a financially viable facility that

improves the lives of its customers and that is in harmony

with the entire community.

USDA Rural Development may offer what your organization needs to improve farm labor conditions in your

community.

Farm Labor Housing

USDA Rural Development serves as the only national

source of construction funds for dedicated farm labor

housing through its Farm Labor Housing loan and grant

programs (often referred to as the Section 514 and 516

programs). These programs provide assistance to build

housing for both migrant and year-round laborers. And

they can help pay for important facilities, such as on-site

child care centers. Most of the housing developments

USDA-financed farm labor housing includes facilities such as

playgrounds and child care centers.
built using these loans and grants are off-farm rental units

available to eligible farmworkers of any farming operation. However, a small number of on-farm units are built

each year with USDA assistance. Today, over 100,000

housing units provide housing for domestic farmworkers

and their families, thanks to these loan and grant programs.

Off-Farm Housing for Farmworkers

USDA low-cost mortgage loans and grants are available to State or local governments and nonprofit organizations to build, buy, improve, or repair rental housing for

farm laborers and to provide amenities such as dining

facilities, community or recreation rooms, child care centers, and laundry rooms. Funds may also be used to: buy

building sites; purchase basic durable household furnishings; and develop water, sewage disposal, heating, and

lighting systems.
Limited partnerships

in which the general

partner is a nonprofit

entity may also obtain

loans under this program. Such partnerships

are eligible for lowincome housing tax

credits, which may be

used in conjunction with

USDA’s Farm Labor

Housing program.

Farm labor housing financed by Rural Development

must be modest in size and cost but adequate to meet

the farm laborer’s family needs.

Typically, the housing looks like conventional apartment

complexes. However, dormitory-type structures are also

eligible for funding, if necessary. Off-farm housing is open

to eligible farmworkers from any farming operation, both

migrant and year-round, and their families.

Rural Development encourages locating off-farm housing close to important facilities such as child care and

health care services. Loan and grant funds can also be

used to build on-site facilities, such as child care or recreational facilities. In all cases, housing must be built in locations free from environmental hazards.

USDA typically provides a rental assistance subsidy to

tenants, making the rent affordable for them. No discrimination because of race, color, religion, age, sex, disability,

family status, or national origin is permitted among

potential occupants.

On-Farm Housing for Farmworkers

USDA Rural Development offices can also provide 1-

percent loans to growers who wish to build on-farm

housing. The on-farm housing is available only to farmworkers who work for the farmer or rancher borrowing

the funds.

Most of the housing built by individual growers has

been single-family homes, although dormitory-style housing has been funded by Rural Development. In most

cases, rent cannot be charged, although some exceptions

can be made for high-volume-occupancy structures. The

term of the loans is 33 years, and the homes must remain

in the program during that period. Several restrictions

apply if a farm operator wishes to pay off this type of loan

early.
Self-Help Housing

Achieving the Dream of Homeownership

Many farmworker families have been able to achieve

the American dream of owning homes through USDA's

Mutual Self-Help Housing program, a sweat-equity alternative that builds affordable houses. Self-Help combines

the Rural Development direct lending program for home

purchases with a grant program that helps nonprofit

organizations guide borrowers in the construction of new

homes, reducing by almost 20 percent the total cost of

purchasing a home.

Participating families provide at least 65 percent of the

labor involved in building the homes. This sweat-equity

contribution allows farmworker families to purchase

houses that otherwise would have been too costly.

This program provides excellent opportunities for farmworker families to become year-round residents of a community, contributing to family stability and creating

stronger rural economies. Because the families work

together to build each other’s homes, usually in groups of

5 to12 families, they develop a sense of community that

fosters long-lasting ties.
Rural Development’s Community Facilities

for Farmworkers

Farmworkers, who often lack access to basic services

such as health care, child care or schools, can be helped

through Rural Development’s community Facilities program. Local governments and nonprofit organizations

can apply to develop these essential community facilities.

community Facilities program funds can be used in

conjunction with the Farm Labor Housing and Mutual

Self-Help Housing programs to help serve the special

needs of farmworkers. These can include the construction

of health care centers for migrant workers, child care centers, and school buildings. Such facilities can serve residents of new farmworker housing financed by USDA, or

can fill the needs of already-existing neighborhoods and

populations.

We’re Here To Help

Wherever your rural community is located, there are

USDA Rural Development offices that can help you build

your farm labor housing or other facility. Rural

Development officials can explain how to apply for assistance, provide valuable advice on project planning, and

help your organization link up in partnerships with nonprofits, government agencies, and private-sector entities

to get the most out of mutual assets.

Further information on programs for farm laborers is

available from the USDA Rural Development State or dis-
trict office serving your area. Information is also available

on the USDA Rural Development website at:

http://www.rurdev.usda.gov or from the agency’s

national office at the following address:

USDA Rural Development

1400 Independence Avenue, SW, STOP 0701

Washington, Dc 20515-0701

To be connected to your Rural Development State office,

you may dial (202) 720-4323 and press 1.

PA 1669

June 2000

Reprinted June 2006

The U.S. Department of Agriculture (USDA) prohibits discrimination in all its programs and activities on the basis of

race, color, national origin, age, disability, and where

applicable, sex, marital status, familial status, parental status, religion, sexual orientation, genetic information, political beliefs, reprisal, or because all or part of an individual’s

income is derived from any public assistance program.

(Not all prohibited bases apply to all programs.) Persons

with disabilities who require alternative means for communication of program information (Braille, large print,

audiotape, etc.) should contact USDA’s TARGET center at

(202) 720-2600 (voice and TDD). 

To file a complaint of discrimination, write to USDA,

Director, Office of civil Rights, 1400 Independence Avenue,

S.W., Washington, D.c. 20250-9410, or call (800) 795-

3272 (voice), or (202) 720-6382 (TDD). USDA is an equal

opportunity provider and employer.