Farm Loans

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UNITED STATES DEPARTMENT OF AGRICULTURE

FARM SERVICE AGENCY FACT SHEET

March 2017

Youth Loans

OVERVIEW

The U.S. Department of Agriculture’s Farm Service 

Agency (FSA) makes operating loans of up to 

$5,000 to eligible individual youths ages 10 to 20 

to finance income-producing, agriculture-related 

projects. The project must be of modest size, 

educational and initiated, developed and carried out 

by youths participating in 4-H clubs, Future Farmers 

of America, tribal youth organizations or similar 

agricultural-affiliated groups.

The project must be an organized and supervised 

program of work. It must be planned and operated 

with the assistance of the organization advisor, 

produce sufficient income to repay the loan and 

provide the youth with practical business and 

educational experience in agriculture-related skills.

WHO MAY BORROW

To qualify for a loan, the applicant must:

• Comply with FSA’s general eligibility 

requirements; and

• Conduct a modest income-producing project in a 

supervised program of work.

HOW LOAN FUNDS MAY BE USED

These loans can finance many kinds of incomeproducing agricultural projects. The loan funds may 

be used to:

• Buy livestock, seed, equipment and supplies;

• Buy, rent or repair needed tools and equipment; 

and

• Pay operating expenses for the project.

WHAT DETAILS TO KNOW

To apply, the applicant must submit completed plans 

and budgets signed by the project advisor and parent 

or guardian along with the FSA application for loan 

assistance.

These loans:

• Have a maximum loan amount of $5,000 (total 

principal balance owed at any one time cannot 

exceed this amount);

• Have an interest rate that is determined 

periodically, based on the cost of money to the 

federal government (after the loan is made, the 

interest rate for that loan will not change);

• Will be secured, in addition to promissory notes, 

by liens on the products produced for sale and on 

chattel property, including livestock, equipment 

and fixtures purchased with loan funds; and

• Have a repayment schedule that varies depending 

on the type of project for which the loan is made. 

For example, if it involves raising livestock 

or crops, the loan is paid when the animals or 

produce are normally sold.

FOR MORE INFORMATION

To apply or for additional information on youth 

loans, contact your local FSA office at 

http://offices.usda.gov. A list of offices, and more 

information about youth and other loan programs, 

are available through the FSA website at 

www.fsa.usda.gov/farmloans. ________________________________________________________

In accordance with Federal civil rights law and U.S. Department of Agriculture 

(USDA) civil rights regulations and policies, the USDA, its Agencies, offices, 

and employees, and institutions participating in or administering USDA programs are prohibited from discriminating based on race, color, national origin, 

religion, sex, gender identity (including gender expression), sexual orientation, 

disability, age, marital status, family/parental status, income derived from a 

public assistance program, political beliefs, or reprisal or retaliation for prior 

civil rights activity, in any program or activity conducted or funded by USDA 

(not all bases apply to all programs). Remedies and complaint filing deadlines 

vary by program or incident.

Persons with disabilities who require alternative means of communication for 

program information (e.g., Braille, large print, audiotape, American Sign Language, etc.) should contact the responsible Agency or USDA’s TARGET Center 

at (202) 720-2600 (voice and TTY) or contact USDA through the Federal Relay 

Service at (800) 877-8339. Additionally, program information may be made 

available in languages other than English.

To file a program discrimination complaint, complete the USDA Program 

Discrimination Complaint Form, AD-3027, found online at http://www.ascr.

usda.gov/complaint_filing_cust.html and at any USDA office or write a letter 

addressed to USDA and provide in the letter all of the information requested in 

the form. To request a copy of the complaint form, call (866) 632-9992. Submit 

your completed form or letter to USDA by:

1) mail: U.S. Department of Agriculture Office of the Assistant Secretary for

 Civil Rights, 1400 Independence Avenue, SW Washington, D.C. 20250-9410;

2) fax: (202) 690-7442; or

3) email: program.intake@usda.gov.

USDA is an equal opportunity provider, employer, and lender.