Your Guide to FSA Farm Loans

United States

Department of

Agriculture

Farm Service Agency
This booklet is modeled on a guide that was originally developed by the New 

Entry Sustainable Farming Project, Northeast Network of Immigrant Farming 

Projects, in September 2007. That guide was authored by Vanessa Bitterman 

and reviewed by Jennifer Hashley, New Entry Sustainable Farming Project 

Director, and David DeFreest, FSA Loan Officer, Westford, MA.
Your Guide to FSA Farm Loans

Purpose of This Guide

Who should read this guide?

This guide is for people who need help starting, 

expanding, or owning a farm or ranch. If you are 

thinking about borrowing money to start or expand 

your farm business, it is a good idea to consider the 

following items.

Before you borrow money, you need to learn about 

your loan options and the process for applying for a 

loan. This guide will help you identify questions and 

address concerns you may have before you start the 

loan process.

It may be helpful to use this guide with someone 

who can direct you to more sources of farming 

or ranching information, such as an experienced 

farmer or rancher, community-based organization, 

or other service provider. You may want to involve 

your family when reviewing this guide to make sure 

everyone understands the process and risks involved 

in owning a farm business and borrowing money.

1
Your Guide to FSA Farm Loans 2
Your Guide to FSA Farm Loans 3

Table of Contents

Introduction to the USDA Farm Service Agency’s Farm Loan Programs....... 6

• Guaranteed Loan Program

• Direct Loan Program

• Land Contract Guarantee Program

• Highly Fractionated Indian Land Loan Program

What Types of Loans Are Available?.............................................................. 10

- Overview

- Description of Loan Types

- Loan Rates and Terms

- Targeted Funds for Beginning and Socially Disadvantaged

Farmers and Ranchers

- Eligibility Requirements

Why Do You Need a Business Plan?.............................................................. 25

• The Purpose of Your Business Plan

• Business Plan Guides for Farmers and Ranchers

• Getting Help To Develop Your Business Plan

• Business Plan Formats

• Business Plan Guidelines

How Do You Apply for a Guaranteed Loan? .................................................. 36

• Preparing an Application for a Loan Guarantee

• Submitting an Application for a Loan Guarantee

What Happens After Your Lender Submits

an Application for a Loan Guarantee? ........................................................... 37

• How FSA Processes an Application for a Loan Guarantee

• If the Application for a Loan Guarantee Is Approved

• If the Application for a Loan Guarantee Is Not Approved
Your Guide to FSA Farm Loans 4

How Will Your Guaranteed Loan Be Serviced?.............................................. 40

• Lender Responsibilities

• Your Responsibilities

• FSA Responsibilities

How Do You Apply for a Direct Loan?............................................................ 41

• Preparing Your Direct Loan Application

• Submitting Your Direct Loan Application

What Happens After You Submit Your

Direct Loan Application to FSA? .................................................................... 49

• How FSA Processes Your Direct Loan Application

• If Your Direct Loan Is Approved

• If Your Direct Loan Is Not Approved

What Are Your Responsibilities as a Direct Loan Borrower?........................ 55

What Credit Supervision Does FSA Provide to

Direct Loan Borrowers?.................................................................................. 57

• Year-End Analyses

• Chattel Checks

• Normal Income Security

• Basic Security

• Graduating to Commercial Credit

What Loan Servicing Options Are Available to

Direct Loan Borrowers?.................................................................................. 60

• Disaster Set-Aside (DSA)

• Primary Loan Servicing (PLS) for Financially Distressed and

Delinquent Borrowers

How Do You Apply for a Land Contract Guarantee? ..................................... 64

• Preparing Your Land Contract Guarantee Application

• Submitting Your Land Contract Guarantee Application
Your Guide to FSA Farm Loans 5

What Happens After You or the Seller Submits a

Land Contract Guarantee Application?.......................................................... 66

• How FSA Processes Your Land Contract Guarantee Application 

• If Your Application for a Land Contract Guarantee Is Approved

• If Your Application for a Land Contract Guarantee Is Not Approved

How Will Your Land Contract Guarantee Be Serviced? ................................ 68

• Escrow or Servicing Agent Responsibilities

• Your Responsibilities

Special Considerations for American Indian/Alaskan

Native Producers and/or Any Producer Using Land

Held in Trust by the Bureau of Indian Affairs................................................. 69

Appendix A: Resources and Contact Information........................................ 70

• USDA Agencies

• Online Resources

• Other Organizations

• Additional Resources for American Indians/Alaskan Natives

Appendix B: Definition of Terms.................................................................... 79
Your Guide to FSA Farm Loans 6

Introduction to the USDA

Farm Service Agency’s Farm Loan Programs

As a farmer or rancher, whether you are just starting out, or have many years of 

experience, there are times when you need to borrow money to start, expand, 

sustain, or make changes to your business. If you are thinking about applying 

for a loan, consider the following:

• Do you want to buy or lease a farm or ranch?

• Do you need to buy things like a tractor, livestock, irrigation pipes, or a 

greenhouse for your farm or ranch?

• Do you already own or rent farmland/ranchland and want to expand your 

business?

• Has a natural disaster, such as drought, flooding, or a bad storm, ruined your 

crops or damaged your farm buildings or equipment?
Your Guide to FSA Farm Loans 7

If you answered “yes” to any of these questions, you may want to apply for a 

loan from the Farm Service Agency (FSA), an agency of the U.S. Department 

of Agriculture (USDA).

You may be able to get a loan or loan guarantee through FSA’s Farm Loan 

Programs if you are a farmer or rancher who is unable to get credit elsewhere 

to start, purchase, sustain, or expand your family farm. Unlike loans from 

a commercial lender, FSA loans are temporary, and our goal is to help you 

graduate to commercial credit. Once you are able to get credit from a 

commercial lender, our mission of providing temporary, supervised credit is 

complete.

In Appendix A, you will find a list of USDA agencies and other organizations 

that you can contact for more information on agriculture, developing business 

plans, and getting help to apply for a loan. In Appendix B, you will find 

definitions for some of the terms used in this guide.

This guide will help you get started in the process of applying for an FSA loan 

or getting a loan guarantee for your farm or ranch. FSA loan officials can help 

you gather information you need to complete your application.

For some parts of your application, such as developing your business plan, 

you may need to ask for advice from a business advisor or other professional. 

Everyone’s situation is different, so applying for a loan may be different for you 

than for another farmer or rancher going through the same process.
Your Guide to FSA Farm Loans 8

Guaranteed Loan Program

Guaranteed loans are made and serviced by 

commercial lenders, such as banks, the Farm Credit 

System, credit unions and other non-traditional 

lenders. FSA guarantees the lender’s loan against 

loss, up to 95 percent. FSA has the responsibility of 

approving all eligible loan guarantees and providing 

oversight of the lender’s activities.

Direct Loan Program

Direct loans are made and serviced by FSA using 

funds from the Federal Government. FSA has 

the responsibility of providing credit counseling 

and supervision to its direct borrowers by helping 

applicants evaluate the adequacy of their real estate 

and facilities, machinery and equipment, financial 

and production management, and goals. 

Land Contract Guarantee Program

Land contract guarantees provide certain financial 

guarantees to the seller of a farm or ranch through 

a land contract sale to a beginning or socially 

disadvantaged farmer or rancher.
Your Guide to FSA Farm Loans 9

Highly Fractionated Indian Land Loan 

Program

The Highly Fractionated Indian Land Loan Program 

provides funding for establishing a revolving fund 

to eligible intermediary lenders with a record of 

successful lending in Indian Country and knowledge 

and experience working with the Bureau of Indian 

Affairs. The intermediary lenders, in turn, make 

loans to tribes, tribal members, and tribal entities to 

purchase highly fractionated Indian land.
Your Guide to FSA Farm Loans 10

What Types of Loans Are 

Available?

Overview

FSA has different types of loans for which you can 

apply, depending on your needs and your current 

situation. This guide will help you to answer the 

following questions:

• What type of loan do I need?

• Do I meet the requirements for a loan?

• What is the loan application process?

• What forms or documents do I need to apply?

Farm ownership, operating, and conservation loans 

are available under the Guaranteed Loan Program. 

Farm ownership, operating, and emergency loans 

are available under the Direct Loan Program. Farm 

ownership and operating loans are offered through 

Direct Microloans and EZ Guarantee loan programs. 

FSA offers two types of guarantees under the Land 

Contract Guarantee Program. In addition, FSA 

provides funding to intermediary lenders for the 

Highly Fractionated Indian Land Loan Program.
Your Guide to FSA Farm Loans 11

Description of Loan Types

Before you apply, you need to decide what type of 

loan you need. You may need to apply for more than 

one type of loan at the same time if you need money 

for different purposes. FSA loan types include the 

following:

Farm Ownership loans help you purchase or 

enlarge a farm or ranch, construct a new or improve 

an existing farm or ranch building, pay closing 

costs, and pay for soil and water conservation and 

protection.

Operating loans help you purchase livestock and 

equipment and pay for minor real estate repairs and 

annual operating expenses.

Microloans are direct farm ownership and operating 

loans with a shortened application process and 

reduced paperwork designed to meet the needs of 

smaller, non-traditional, and niche-type operations.

Emergency loans help you if you suffered a 

qualifying loss caused by natural disasters that 

damaged your farm or ranch. Emergency loan funds 

may be used to restore or replace essential property, 

pay all or part of production costs associated with 

the disaster year, pay essential family living expenses, 

reorganize the farming operation, and refinance 

certain debts.
Your Guide to FSA Farm Loans 12

EZ Guarantee loans are guaranteed farm ownership 

and operating loans with a shortened application 

process and reduced paperwork designed to meet 

the needs of smaller, non-traditional, and niche-type 

operations.

Conservation loans help you complete a 

conservation practice in an approved conservation 

plan.

Land contract guarantees provide certain financial 

guarantees to the seller of a farm or ranch through 

a land contract sale to a beginning or socially 

disadvantaged farmer or rancher. The seller may 

request either of the following:

• Prompt Payment Guarantee: A guarantee up to

the amount of three amortized annual

installments plus the cost of any related real

estate taxes and insurance. The seller must

choose a third-party escrow agent who will

handle transactions related to the contract.

• Standard Guarantee: A guarantee of

90 percent of the outstanding principal

balance under the land contract. The

seller must choose a third-party servicing

agent.
Your Guide to FSA Farm Loans 13

Highly Fractionated Indian Land Loans provide a 

way for tribes, tribal members, and tribal entities to 

purchase fractionated interests through intermediary 

lenders.

The following chart provides additional details 

for the different types of loans and the maximum 

loan amounts. You may request any amount up 

to the maximum. The rates and terms of the loan 

address the interest rate that will be charged and the 

maximum number of years you will make payments 

on the loan.
Your Guide to FSA Farm Loans 14

Farm Loan Programs Information Chart

Type of Loan

Direct Farm Ownership

Direct Down Payment

Direct Farm

Ownership Participation

Direct Farm Ownership

Microloan

Direct Operating

Direct Operating

Microloan

Direct Emergency

Guaranteed Farm

Ownership

EZ Guarantee Farm

Ownership***

$600,000

45% of the lesser of the following:

● the farm or ranch

 purchase price

● the appraised value

or a maximum of $300,150

$600,000

$50,000

$400,000

$50,000

The lowest of the following:

● 100% actual or physical losses

● $500,000

The maximum loan amount is

adjusted annually for inflation*

$100,000

● Term: Up to 40 years ● Interest rate: fixed**

● Term: Up to 20 years ● Interest rate: fixed**

● Term: Up to 40 years ● Interest rate: direct Farm

 Ownership rate less 2% with

 a floor of 2.5% if at least 50%

 of loan amount is provided

 by another lender

● Term: Up to 25 years ● Interest rate: fixed**

● Term: 1 to 7 years ● Interest rate: fixed**

● Term: 1 to 7 years ● Interest rate: fixed**

● Term: 1 to 7 years for non-real

 estate purposes

● Up to 40 years for physical

 losses on real estate

● Interest rate: fixed**

● Term: Up to 40 years ● The interest rate is negotiated

 by you and your lender

● Term: Up to 40 years ● The interest rate is negotiated

 by you and your lender

Maximum Loan Amount Rates and Terms
Your Guide to FSA Farm Loans 15

Farm Loan Programs Information Chart Continued

Type of Loan

Guaranteed Operating

EZ Guarantee

Operating***

Guaranteed Conservation

Loan (CL)

Land Contract Guarantee

The maximum loan amount is

adjusted annually for inflation*

$100,000

The maximum loan amount is

adjusted annually for inflation*

A maximum purchase price of

$500,000 on a new land contract

● Term: 1 to 7 years ● The interest rate is negotiated

 by you and your lender

● Term: 1 to 7 years ● The interest rate is negotiated

 by you and your lender

● Term: Not to exceed 30 years,

 or shorter period, based on the

 life of the security

● The interest rate is negotiated

 by you and your lender

● Term: Contract payments must

 be amortized for a minimum of

 20 years with equal payments

 during the term of the

 guarantee. The guarantee

 period is 10 years.

● Interest rate must be fixed and

 cannot exceed the direct farm

 ownership interest rate plus

 3%.

● Down payment of at least 5%

Maximum Loan Amount Rates and Terms
Your Guide to FSA Farm Loans 16

*To determine the maximum loan limit for the current year, 

please check with your local FSA loan official at

https://www.fsa.usda.gov/state-offices/index or our website 

at https://www.fsa.usda.gov/programs-and-services/farmloan-programs/index.

**Direct loan interest rates are adjusted monthly and are 

posted online at https://www.fsa.usda.gov/programs-andservices/farm-loan-programs/index and at your local FSA 

office. Once your loan is closed, the interest rate is fixed at 

the rate in effect on the date of loan approval or loan closing, 

whichever is lower.

***The combined maximum loan amount for EZ Guarantee 

OL and FO loans may not exceed $100,000.

Note: FSA offers other types of loans, such as marketing 

assistance loans and farm storage facility loans, which may 

have different application or eligibility requirements than 

listed in this guide. For more information on these programs, 

please visit https://www.fsa.usda.gov/programs-and-services/

price-support/Index.

Loan Rates and Terms

When you receive a loan from FSA or another 

lender, you have to pay back the loan amount 

(principal), plus an additional amount of interest. 

“Rate” is the interest rate charged on your loan from 

FSA or your commercial lender. The period of time 

you are making payments on the loan is called the 

loan “term.” The amount of interest that you will 

pay is based on the interest rate and loan term.
Your Guide to FSA Farm Loans 17

The interest rate is shown as a percentage rate 

(%). A lower interest rate means that the cost of 

borrowing the money is lower, so you pay a smaller 

amount in interest. A higher interest rate means that 

the cost is higher, and you will pay more to borrow 

the money. Some interest rates are fixed, which 

means that the percentage rate (%) stays the same for 

the entire time you are paying back your loan. Other 

rates are variable, which means that the percentage 

rate (%) can change periodically while you are paying 

back your loan. With a variable interest rate, the 

rate can either increase or decrease. FSA direct loans 

and land contract guarantees have fixed interest rates. 

Guaranteed loans may have either fixed or variable 

interest rates.

The loan term is usually based on the use of the 

loan funds and the collateral that secures the loan. 

Generally, a loan made for real estate purposes will 

have a longer term than a loan made to purchase 

equipment or livestock. In addition, a loan that is 

secured by real estate may have a longer term than 

a loan secured by equipment or livestock. A longer 

loan term will reduce your yearly payment amount, 

but will increase your total interest cost.
Your Guide to FSA Farm Loans 18

Amortization Schedule

Year

5.00% $30,000.00

1

2

3

4

5

6

7

$5,185.00

$5,185.00

$5,185.00

$5,185.00

$5,185.00

$5,185.00

$5,185.00

$3,685.00

$3,871.00

$4,063.00

$4,266.00

$4,479.00

$4,703.00

$4,933.00

$1,500.00

$1,314.00

$1,122.00

$919.00

$706.00

$482.00

$252.00

$26,315.00

$22,444.00

$18,381.00

$14,115.00

$9,636.00

$4,933.00

$0.00

Annual Payment Principal Interest Loan Balance

Amortization is the established schedule for paying off a debt over time through 

regular payments. It is based on the interest rate and term of a loan, and it 

shows the amount of each payment put towards interest, as well as the amount 

put towards the principal balance. Initially, a large portion of each payment is 

applied to interest. Over time, a larger portion goes towards paying down the 

principal.

The following example shows an amortization schedule for a $30,000 operating 

loan with a 5-percent interest rate and a 7-year term. For each of the 7 years, 

you can see how much of your yearly payment goes toward paying interest and 

principal on the loan.
Your Guide to FSA Farm Loans 19

Targeted Funds for Beginning and 

Socially Disadvantaged Farmers and 

Ranchers

FSA is referred to as the “Lender of First 

Opportunity” because each year it targets some of the 

loan funds for beginning and socially disadvantaged 

farmers or ranchers. FSA sets aside money specifically 

to help farmers or ranchers who are just starting 

up, or who are members of a group which has been 

subjected to racial, ethnic, or gender prejudice 

because of their identity, without regard to their 
Your Guide to FSA Farm Loans 20

individual qualities. In addition, land contract 

guarantees are only available on land contracts to 

a beginning or socially disadvantaged farmer or 

rancher.

You may qualify for direct or guaranteed loan funds 

as a beginning farmer or rancher if you started 

farming or ranching less than 10 years ago. You are a 

socially disadvantaged farmer or rancher if you are:

• American Indian or Alaskan Native

• Asian

• Black or African American

• Native Hawaiian or other Pacific Islander

• Hispanic

• a Woman
Your Guide to FSA Farm Loans 21

Eligibility Requirements

Depending on the type of loan you want, you will have to meet certain 

eligibility requirements. Different types of loans have different eligibility 

requirements. Examples of general eligibility requirements are below. If you 

answer “no” to any of the requirements, we recommend that you discuss the 

requirement further with an FSA loan official.

Eligibility Requirements for Direct Loans (Farm Ownership and

Operating, Including Microloans, or Emergency)

I am a citizen of the United States, a non-citizen national, or a qualied alien.

I possess the legal capacity to obtain a loan.

I am unable to obtain credit elsewhere at reasonable rates and terms.

I can show that I have a good credit history (I pay my bills on time) or, if I

do not, I can show that my failure to pay my bills was due to circumstances

beyond my control, was infrequent, or did not happen recently.

My operation is a family farm or ranch, and the majority of the physical labor

and management are provided by me, a family member, or another entity

member. 

I have not received debt forgiveness (caused FSA to lose money) on

another direct or guaranteed loan. (Exceptions apply) 

(Contact an FSA loan ocial for additional guidance or clarication.)

I will not be behind on any debt (other than a debt under the Internal

Revenue Code of 1986) that I owe to the U.S. Government when the loan

is closed.

YES NO
Your Guide to FSA Farm Loans 22

Eligibility Requirements for Direct Loans (Farm Ownership and

Operating, Including Microloans, or Emergency) Continued

I have the training, education, or experience that enables me to effectively

manage my farm or ranch.

For farm ownership loans only: I have participated in the business operations

of a farm or ranch for at least 3 out of the last 10 years.

Note: Discuss your particular situation with an FSA loan official as there are

several ways that you may meet this requirement.

For beginning farmer or rancher targeted funds only: I have operated a farm

or ranch for 10 years or less.

For beginning farmer or rancher targeted funds only: If I currently own a

farm or ranch, it is less than 30% of the average farm size in my county.

For down payment loans only: I can make a cash down payment of at least

5% of the purchase price for the farm or ranch I want to buy.

For emergency loans only: My operation is in a county that has a disaster

designation, and it has not been more than 8 months since the designation

was declared. I suffered a production loss (at least 30%) or a physical loss due

to the designated disaster.

YES NO

Note: There are limitations on how many years you may receive a direct OL or FO loan. 

Your FSA loan official will explain the time limits in detail.
Your Guide to FSA Farm Loans 23

Eligibility Requirements for Guaranteed Loans (Farm

Ownership and Operating, Including EZ Guarantee, Conservation)

I am a citizen of the United States, a non-citizen national, or a qualified alien.

I possess the legal capacity to obtain a loan.

e lender will not approve my loan without an FSA guarantee.*

I have not received debt forgiveness (caused FSA to lose money) on another

direct or guaranteed loan. 

Note: Debt forgiveness does not include debt reduction through a

conservation contract, a write-down provided as part of a discrimination

complaint or to claimants in certain legal settlements, or prior debt

forgiveness that has been repaid in its entirety. (Contact an FSA loan official

for additional guidance or clarification.)

I can show that I have good credit history (I pay my bills on time) or, if I do

not, I can show that my failure to pay my bills was due to circumstances

beyond my control, was infrequent, or did not happen recently.

My operation is a family farm or ranch, and the majority of the physical labor

and management are provided by me, a family member, or another entity

member.*

I will not be behind on any debt (other than a debt under the Internal

Revenue Code of 1986) that I owe to the U.S. Government when the loan

is closed.

YES NO

*This requirement does not apply to a conservation loan.
Your Guide to FSA Farm Loans 24

Eligibility Requirements for Land Contract Guarantees**

I am a beginning or socially disadvantaged farmer or rancher.

I am a citizen of the United States, a non-citizen national, or a qualified alien.

I possess the legal capacity to enter into a legally binding agreement.

e seller is unwilling to enter into the land contract without an

FSA guarantee.

I can show that I have a good credit history (I pay my bills on time) or, if I

do not, I can show that my failure to pay my bills was due to circumstances

beyond my control, was infrequent, or did not happen recently.

My operation is a family farm or ranch, and the majority of the physical labor

and management are provided by me, a family member, or another

entity member.

I have not received debt forgiveness (caused FSA to lose money) on a direct

or guaranteed loan. 

Note: Debt forgiveness does not include debt reduction through a

conservation contract, a write-down provided as part of a discrimination

complaint or to claimants in certain legal settlements, or prior debt

forgiveness that has been repaid in its entirety. (Contact an FSA loan official

for additional guidance or clarification.)

I will not be behind on any debt (other than a debt under the Internal

Revenue Code of 1986) that I owe to the U.S. Government when the

guarantee is issued.

YES NO

**These eligibility requirements apply to the buyer under the land contract. 

Additional eligibility requirements apply to the seller.
Your Guide to FSA Farm Loans 25

Why Do You Need a Business Plan?

The Purpose of Your Business Plan

Your business plan is very important. It is like a roadmap that shows how you 

will move from where you are now to where you want your operation to be in 

the future. A good business plan that describes your financial and operational 

goals will help you to evaluate your progress as you establish or continue your 

farm or ranch in the future. It shows that you have seriously thought about 

your goals and plans for the future and that you understand all parts of your 

operation. 
Your Guide to FSA Farm Loans 26

In order to get an FSA loan, a guarantee on a loan 

made by a commercial lender, or a land contract 

guarantee, you need to create a detailed business plan 

that describes:

• Your mission, vision, and goals for your farm or 

ranch.

• Your current assets (property or investments you 

own) and liabilities (debts, loans, or payments 

you owe).

• What your operation will produce, and how and 

where you will market and sell your products. 

This is sometimes referred to as a marketing plan.

• Whether the amount of income your operation 

will generate will be enough to pay your business 

and family living expenses.
Your Guide to FSA Farm Loans 27

A comprehensive business plan is an important first 

step for any size business‒no matter how simple or 

complex. You should create a strong business plan 

because it:

• Will help you get organized and make sure you 

are taking all of the necessary steps and 

remembering all of the details.

• Will act as your guide. It will help you to think 

carefully about why you want to farm or ranch 

and what you want to achieve in the future. 

Over time, you can look back at your business 

plan and determine whether you are achieving 

your goals.

• Is required to get a loan. Lenders look closely at 

business plans to determine if you can afford to 

repay the loan.
Your Guide to FSA Farm Loans 28

Business Plan Guides for Farmers 

and Ranchers

Below are examples of agricultural business planning 

guides that can help you think about all of the 

important parts of your operation. These products 

are for reference only and do not represent the 

opinions of FSA, nor does FSA endorse any specific 

commercial product. There may be other products 

available that you would prefer. 

Building a Sustainable Business: A Guide to 

Developing a Business Plan for Farms and

Rural Businesses

Developed by the Minnesota Institute for Sustainable 

Agriculture, and published by the Sustainable 

Agriculture Research and Education.

Available free online at: 

https://www.misa.umn.edu/publications/

buildingasustainablebusiness
Your Guide to FSA Farm Loans 29

Small Farm Decision-Making &

Enterprise Planning Workbook

North Carolina State University Cooperative 

Extension. (c)1992

http://www.agmrc.org/media/cms/

decisiom_95B78F0641535.pdf

Acción USA Small Business Owner’s Toolkit

U.S. Acción Organization 2018 

Available free online at:

https://us.accion.org/

Small Farm

Decision-Making

&

Enterprise Planning Workbook

67$7(81,9(56,7< $	767$7(81,9(56,7<

COOPERATIVE

EXTENSION +HOSLQJ 3HRSOH 3XW .QRZOHGJH WR :RUN

NC

Ways to Grow
Your Guide to FSA Farm Loans 30

AgPlan

AgPlan Center for Farm Financial 

Management. Regents of the University of 

Minnesota (c) 2007-2010. 

Available free online at:

https://agplan.umn.edu/
Your Guide to FSA Farm Loans 31

Getting Help To Develop Your 

Business Plan

Creating a good business plan takes time and effort. 

You may want to find a business advisor who can 

help you with the process. There are many sources 

for professional advice, and it may be helpful to 

attend workshops that focus on business planning.

Your FSA loan official may be able to assist you 

or refer you to an advisor in your area who has 

experience in advising farmers and ranchers. The 

following are some organizations that can help in 

developing business plans:

• Small Business Counselors (SCORE) is a 

nonprofit organization with a network of 

volunteers who have experience in running 

and managing businesses. Its representatives

can give you advice on how to create a good 

business plan. To learn more, visit 

https://www.score.org.
Your Guide to FSA Farm Loans

• The USDA’s National Institute of Food and 

Agriculture administers the Extension Risk 

Management Education (ERME) 

program through four regional ERME 

Centers and a fifth “Digital Center.” The 

program’s objective is to educate farmers and 

ranchers on the full range of strategies to manage 

the risks inherent in agriculture, particularly 

production, price, finances, legal issues, and 

human resource management. Such 

strategies may include futures, options, 

agricultural trade options, crop insurance, cash 

forward contracting, debt reduction, product and 

enterprise diversification, farm labor 

management, and farm resources risk reduction, 

among others. To learn more, visit 

http://extensionrme.org.

• Your local Cooperative Extension office may 

also be able to help you get information for your 

operation. To find your local Cooperative 

Extension office, visit 

https://nifa.usda.gov

Note: Contact information for FSA, SCORE, 

ERME Centers, and Cooperative Extension is 

included in Appendix A of this guide.

32
Your Guide to FSA Farm Loans 33

Business Plan Formats

There are many different styles of business plans. 

Some are written documents; others may be a set 

of worksheets that you complete. No matter what 

format you choose, several key aspects of your 

operation are important to consider.

Use the guidelines below to start thinking about 

your business plan. Remember, you will answer these 

kinds of questions in more detail when you create 

your official business plan and meet with an FSA 

loan official or another lender to apply for a loan.
Your Guide to FSA Farm Loans

Business Plan Guidelines

1. Are you starting a new farm or ranch, or are you already in business? 

• What products do you produce?

• What is the size of your operation? 

• Is the ownership structure of your business a sole proprietorship, 

 partnership, corporation, trust, limited liability company, or other type 

 of entity? 

• If your business is an entity, are any of its members an entity?

• What agricultural production and financial management training or 

 experience do you, your family members, or your business partners have?

• How long have you been in business?

2. What short- and long-term goals do you have for your operation?

• How do you plan to start, expand, or change your operation? 

• What plans do you have to make your operation more efficient or 

 more profitable? 

• What type of farm or ranch model (conventional, sustainable, organic, or 

 alternative agricultural practices) do you plan to use? 

3. What resources do you have or will you need for your business?

• Is the equipment and real estate that you own or rent adequate to 

 conduct your operation? If not, how do you plan to address those needs? 

• What additional resources do you need? 

34
Your Guide to FSA Farm Loans 35

4. Do you have a support system in place?

• What help will you have operating and managing your farm or ranch? 

• What other resources, such as a mentor or community-based 

 organization, do you plan to use? 

5. Will the income you generate be sufficient to pay your operating expenses, 

living expenses, and loan payments? 

• What crops, livestock, or other products do you plan to sell? 

• How will you market your products? 

• Are the yields and prices you used to estimate your income realistic? 

• What other sources of income are available to supplement your business 

 income? 

• What business expenses will you incur? 

• What family living expenses do you pay? 

• How will you measure the success of your business?
Your Guide to FSA Farm Loans

How Do You Apply for a 

Guaranteed Loan?

Preparing an Application for a 

Loan Guarantee

Guaranteed loans are made and serviced by 

commercial lenders, such as banks, the Farm Credit 

System, credit unions, and other non-traditional 

lenders. FSA guarantees the lender’s loan against loss, 

up to 95 percent. Contact your lender if you are 

interested in an FSA guaranteed loan. Your lender 

will assist you in preparing the forms needed. You 

and your lender may obtain the forms to apply for 

a loan guarantee from the local FSA office or from 

the FSA website at https://forms.sc.egov.usda.gov/

eForms/welcomeAction.do?Home.

Submitting an Application for a 

Loan Guarantee

Your lender will submit the application to FSA.

36
Your Guide to FSA Farm Loans 37

What Happens After 

Your Lender Submits an 

Application for a Loan 

Guarantee?

How FSA Processes an Application 

for a Loan Guarantee

After receiving the application from your lender, 

FSA will:

• Review the application to determine whether all

required forms and documents have been 

submitted and notify the lender in writing of any 

missing items within 5 days. You will receive a 

copy of this notification.

• Notify the lender in writing within 5 days of 

receiving all forms and documents that the 

application is complete.

• Review the application for eligibility, repayment 

ability, security, and compliance with other 

program requirements.
Your Guide to FSA Farm Loans 38

If the Application for a Loan Guarantee 

Is Approved

If the application for a guarantee is approved, FSA 

will notify the lender in writing.

Normally, your lender will schedule the loan 

closing as soon as possible after receiving approval. 

However, FSA receives funding for guarantees 

on a fiscal-year basis, and the demand for some 

guaranteed loan types may exceed the level of 

funding received. When this occurs, FSA will notify 

the lender that the guarantee is approved subject 

to the availability of funds and the loan cannot be 

closed until additional funding is received.

Note: For most loans, FSA charges the lender a 

guarantee fee of 1.5 percent of the guaranteed 

portion of the loan. The lender may pass this fee on 

to you. The fee is waived under some circumstances.
Your Guide to FSA Farm Loans 39

If the Application for a Loan Guarantee 

Is Not Approved 

If the application for guarantee is not approved, FSA 

will notify the lender in writing of:

• The reason it cannot be approved;

• The opportunity to request:

- reconsideration, which provides the 

 opportunity to meet with an FSA loan official 

 to present additional information and explain 

 why FSA’s decision may be in error;

- mediation, which is a process for solution of a 

 disagreement. A trained neutral mediator 

 assists two or more parties who disagree by 

 looking at the issues, considering all available 

 options, and attempting to have both parties 

 agree on an acceptable solution;

- an appeal to the National Appeals Division, 

 an independent organization within USDA, 

 where evidence may be presented 

 demonstrating why FSA’s decision may 

 be wrong;

• Your rights if you believe you have been 

discriminated against under the Federal Equal 

Credit Opportunity Act or USDA regulations.

Note: You will receive a copy of this notification.
Your Guide to FSA Farm Loans

How Will Your Guaranteed 

Loan Be Serviced?

Lender Responsibilities

Lenders must supervise guaranteed loan borrowers 

in a manner similar to the supervision of their other 

agricultural loan customers. Lenders are expected to 

apply standard agricultural loan servicing principles 

to their guaranteed customers.

Your Responsibilities

As a guaranteed loan borrower, you are responsible 

for complying with all loan agreements you have 

with your lender.

FSA Responsibilities

FSA will monitor the lender’s supervision of 

guaranteed loan borrowers and will notify the lender 

in writing of any deficiencies.

40
Your Guide to FSA Farm Loans 41

How Do You Apply for a 

Direct Loan?

Preparing Your Direct Loan Application

You can get direct loan application forms at your 

local FSA office or from the FSA website at https://

forms.sc.egov.usda.gov/eForms/welcomeAction.

do?Home. The local FSA loan official can help you 

complete the FSA forms or identify other sources of 

assistance in your area. When you ask for assistance, 

request an application, or submit an application, FSA 

will provide you a Receipt for Service.
Your Guide to FSA Farm Loans

Although it may take time to gather the information 

to accurately complete your application, it will allow 

FSA to process your application more quickly.

A direct loan application for farm ownership 

and operating loans includes the following forms 

and documents:

42

Form Approved – OMB No. 0560-0237 

This form is available electronically. (See Page 2 for Privacy Act and Public Burden Statements) 

FSA-2005 U.S. DEPARTMENT OF AGRICULTURE Position 3 

(03-22-10) Farm Service Agency 

CREDITOR LIST 

A. INSTRUCTIONS: List all creditors to whom you are presently indebted, or provide alternate documents that provide the same 

 information. In the case of an entity, the entity and each individual member must complete this form or provide alternate documents.

1. Name: 

B. CREDITORS (Complete a separate entry for each creditor) 

1A. Name and Address 1B. Telephone Number 

1C. Account Number 

1D. Contact Person 

2A. Name and Address 2B. Telephone Number 

2C. Account Number 

2D. Contact Person 

3A. Name and Address 3B. Telephone Number 

3C. Account Number 

3D. Contact Person 

4A. Name and Address 4B. Telephone Number 

4C. Account Number 

4D. Contact Person 

5A. Name and Address 5B. Telephone Number 

5C. Account Number 

5D. Contact Person 

The U.S. Department of Agriculture (USDA) prohibits discrimination in all of 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, political beliefs, genetic information, 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, Assistant Secretary for Civil Rights, Office of the Assistant Secretary for Civil 

Rights, 1400 Independence Avenue, S.W., Stop 9410, Washington, DC 20250-9410, or call toll-free at (866) 632-9992 (English) or (800) 877-8339 (TDD) or

(866) 377-8642 (English Federal-relay) or (800) 845-6136 (Spanish Federal-relay). USDA is an equal opportunity provider and employer. 

PA

es

ch

cre

 Form Approved – OMB No. 0560-0237 

This form is available electronically. (See Page 2 for Privacy Act and Paperwork Reduction Act Statements) 

FSA-2002 U.S. DEPARTMENT OF AGRICULTURE Position 3 

(08-20-14) Farm Service Agency 

THREE-YEAR FINANCIAL HISTORY 1. Name 

FORM IS NOT REQUIRED. Applicant may submit alternate documents 

that provide the information collected on this form. 

A. OPERATING INCOME 

20 20 20 

1. Crop Sales 

2. Livestock & Poultry Sales 

3. Dairy Livestock Sales 

4. Milk Sales 

5. Livestock Product Sales 

6. Ag. Program Payments 

7. Crop Insurance Proceeds 

8. Custom Hire Income 

9. Other Income 

10. TOTAL OPERATING INCOME 

B. OPERATING EXPENSES 

1. Car and Truck 

2. Chemicals 

3. Conservation 

4. Custom Hire 

5. Depreciation 

6. Feed Supplement 

7. Feed, Grain and Roughage 

8. Fertilizers and Lime 

9. Freight and Trucking 

10. Gas/Fuel/Oil 

11. Insurance 

12. Labor Hired 

13. Rent - Machinery/Equipment/Vehicle 

14. Rent - Land/Animals 

15. Repairs and Maintenance 

16. Seeds and Plants 

17. Supplies 

18. Taxes - Real Estate 

19. Utilities 

20. Veterinary/Breeding/Medicine 

21. Purchases for Resale 

22. Other Expenses 

23. Other - Irrigation 

24. Interest 

25. TOTAL OPERATING EXPENSES 

The U.S. Department of Agriculture (USDA) prohibits discrimination against its customers, employees, and applicants for employment on the basis of race, color, national origin, age, disability, sex, gender identity, 

religion, reprisal, and where applicable, political beliefs, marital status, familial or parental status, sexual orientation, or all or part of an individual’s income is derived from any public assistance program, or 

protected genetic information in employment or in any program or activity conducted or funded by the Department. (Not all prohibited bases will apply to all programs and/or employment activities.) Persons with 

disabilities, who wish to file a program complaint, write to the address below or if you require alternative means of communication for program information (e.g., Braille, large print, audiotape, etc.) please contact 

USDA’s TARGET Center at (202) 720-2600 (voice and TDD). Individuals who are deaf, hard of hearing, or have speech disabilities and wish to file either an EEO or program complaint, please contact USDA 

through the Federal Relay Service at (800) 877-8339 or (800) 845-6136 (in Spanish). 

If you wish to file a Civil Rights program complaint of discrimination, complete the USDA Program Discrimination Complaint Form, found online at http://www.ascr.usda.gov/complaint_filing_cust.html, or at any 

USDA office, or call (866) 632-9992 to request the form. You may also write a letter containing all of the information requested in the form. Send your completed complaint form or letter by mail to U.S. Department 

of Agriculture, Director, Office of Adjudication, 1400 Independence Avenue, S.W., Washington, D.C. 20250-9410, by fax (202) 690-7442 or email at program.intake@usda.gov. USDA is an equal opportunity 

provider and employer.

pr

on

am

lle

DA

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ela

This form is available electronically. Form Approved – OMB No. 0560-0237

FSA-2004

(03-23-10)

U. S. DEPARTMENT OF AGRICULTURE

Farm Service Agency

Position 3 

AUTHORIZATION TO RELEASE INFORMATION 

As part of considering a loan or servicing request, the Farm Service Agency (FSA), USDA, may verify information 

contained in the application and other documents required in connection with the request. 

I authorize you to provide to FSA for verification purposes the following applicable information.

(1) Employment or income records.

(2) Bank accounts, stock holdings, and any other assets. 

(3) Other credit references. 

(4) Debt and collateral information.

I further authorize FSA to order a credit report and verify any other credit information.

I understand that under the Right to Financial Privacy Act of 1978, 12 U.S.C. 3401, et seq., FSA is authorized to access 

my financial records held by financial institutions in connection with the consideration or administration of the loan. I 

also understand that financial records involving the loan and loan application will be available to FSA without 

further notice or authorization, but will not be disclosed or released by FSA to another Government agency or

department or used for another purpose without my consent except as required or permitted by law.

The information FSA obtains is only to be used to process the request for a loan or servicing assistance. A copy or

facsimile of this authorization may be accepted as an original. 

Your prompt reply is appreciated. 

5A. Name 5B. Signature 5C. Date (MM-DD-YYYY)

Note: The following is made in accordance with the Privacy Act of 1974 (5 USC 552a – as amended). The authority for 

requesting the information identified on this form is the Consolidated Farm and Rural Development Act, as amended (7

U.S.C. 1921 et. seq.). The information will be used to determine eligibility and feasibility for loans and loan guarantees, and 

servicing of loans and loan guarantees. The information collected on this form may be disclosed to other Federal, State,

and local government agencies, Tribal agencies, and nongovernmental entities that have been authorized access to the 

information by statute or regulation and/or as described in the applicable Routine Uses identified in the System of Records 

Notice for USDA/FSA-14, Applicant/Borrower. Providing the requested information is voluntary. However, failure to furnish 

the requested information may result in a denial for loans and loan guarantees, and servicing of loans and loan guarantees. 

The provisions of criminal and civil fraud, privacy, and other statutes may be applicable to the information provided. 

According to the Paperwork Reduction Act of 1995, an agency may not conduct or sponsor, and a person is not required to

respond to, a collection of information unless it displays a valid OMB control number. The valid OMB control number for 

this information collection is 0560-0237. The time required to complete this information collection is estimated to average

10 minutes per response, including the time for reviewing instructions, searching existing data sources, gathering and

maintaining the data needed, and completing and reviewing the collection of information. RETURN THIS COMPLETED 

FORM TO YOUR COUNTY FSA OFFICE.

The U.S. Department of Agriculture (USDA) prohibits discrimination in all of 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,

political beliefs, genetic information, 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, Assistant Secretary for Civil Rights, Office of the Assistant Secretary for Civil 

Rights, 1400 Independence Avenue, S.W., Stop 9410, Washington, DC 20250-9410, or call toll-free at (866) 632-9992 (English) or

(800) 877-8339 (TDD) or (866) 377-8642 (English Federal-relay) or (800) 845-6136 (Spanish Federal-relay). USDA is an equal

opportunity provider and employer. 

 

 U.S.

 

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This form is available electronically. 

Form Approved – OMB No. 0560-0237 

FSA-2001 

(03-06-15) 

U.S. DEPARTMENT OF AGRICULTURE 

Farm Service Agency

Position 3 

REQUEST FOR DIRECT LOAN ASSISTANCE

PART A – INDIVIDUAL APPLICANT, NOT A LEGAL ENTITY 

Instructions: Individual applicants and married applicants with a non-applicant spouse will complete Items 1 through 16. Items 11, 14 

and 15 are voluntary. *Race, ethnicity, and gender information is requested by the Federal Government to monitor FSA's compliance 

with Federal laws prohibiting discrimination against applicants. Applicants are not required to furnish this information but are 

encouraged to do so. Failure to provide this information may result in not receiving targeted funds for which the applicant may be 

eligible. This information will not be used to evaluate this application. 

1. Exact Full Legal Name 2. Email Address

3. Mailing Address (Including Zip Code) 4A. Physical Address (If different than mailing address)

4B. County of Residence 

Same as Physical Address: YES NO

5. Contact Telephone Numbers (Area Code): 6. County of Operation Headquarters 7. Date of Birth (MM-DD-YYYY)

Home: Primary

Cell: Primary 8. Social Security Number (9 digits)

Business: Primary

9. Name and Address of Employer (If applicable) 10. Applicant Is: *11. Race: 

U.S. Citizen American Indian/Alaskan Native 

*Non-Citizen National Asian 

*Resident Alien (I-551) Black/African American 

*Refugee or Other Native Hawaiian/Other Pacific 

Islander 

*NOTE: Applicant will be asked to provide 

I-551 and/ or other proper documentation of 

immigration status as found under PRWORA 

(8 U.S.C. 1641). 

White 

Telephone Number (Area Code): NOTE: More than one box may be selected. 

12. Veteran Status 13. Marital Status *14. Applicant Is: *15. Gender 16. FSA Use Only 

 Veteran Unmarried Divorced Hispanic or Latino Male Observed 

 Not Veteran Separated Legally Separated Not Hispanic or Latino Female Provided 

 Married, Applying as Individual PROCEED TO PART D

NOTE: The following statement is made in accordance with the Privacy Act of 1974 (5 USC 552a – as amended). The authority for requesting the information identified on 

this form is 7 CFR Part 761, 7 CFR Part 764, the Consolidated Farm and Rural Development Act (7 U.S.C. 1921 et seq.), and the Agricultural Act of 2014 (Pub. L. 

113-79). The information will be used to determine eligibility to participate in and receive benefits under the Direct Loan Program. The information collected on this 

form may be disclosed to other Federal, State, Local government agencies, Tribal agencies, and nongovernmental entities that ave been authorized access to the 

information by statute or regulation and/or as described in applicable Routine Uses identified in the System of Records Notice for USDA/FSA-14, 

Applicant/Borrower. Providing the requested information is voluntary. However, failure to furnish the requested information will result in a determination of 

ineligibility to participate in and receive benefits under the Direct Loan Program. 

 

According to the Paperwork Reduction Act of 1995, an agency may not conduct or sponsor, and a person is not required to respond to, a collection of information 

unless it displays a valid OMB control number. The valid OMB control number for this information collection is 

0560-0237. The time required to complete this information collection is estimated to average 33 minutes per response, including the time for reviewing instructions, 

searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. RETURN THIS 

COMPLETED FORM TO YOUR COUNTY FSA OFFICE.

The U.S. Department of Agriculture (USDA) prohibits discrimination against its customers, employees, and applicants for employment on the basis of race, color, national origin, age, disability, sex, gender 

identity, religion, reprisal, and where applicable, political beliefs, marital status, familial or parental status, sexual orientation, or all or part of an individual’s income is derived from any public assistance 

program, or protected genetic information in employment or in any program or activity conducted or funded by the Department. (Not all prohibited bases will apply to all programs and/or employment 

activities.) Persons with disabilities, who wish to file a program complaint, write to the address below or if you require alternative means of communication for program information (e.g., Braille, large print, 

audiotape, etc.) please contact USDA’s TARGET Center at (202) 720-2600 (voice and TDD). Individuals who are deaf, hard of hearing, or have speech disabilities and wish to file either an EEO or 

program complaint, please contact USDA through the Federal Relay Service at (800) 877-8339 or (800) 845-6136 (in Spanish). 

If you wish to file a Civil Rights program complaint of discrimination, complete the USDA Program Discrimination Complaint Form, found online at http://www.ascr.usda.gov/complaint_filing_cust.html, 

or at any USDA office, or call (866) 632-9992 to request the form. You may also write a letter containing all of the information requested in the form. Send your completed complaint form or letter by mail to 

U.S. Department of Agriculture, Director, Office of Adjudication, 1400 Independence Avenue, S.W., Washington, D.C. 20250-9410, by fax (202) 690-7442 or email at program.intake@usda.gov. USDA 

is an equal opportunity provider and employer. 

Initials: Date: 

This form is available electronically. Form Approved – O

FSA-2001

(03-06-15)

U.S. DEPARTMENT OF AGRICULTURE

Farm Service Agency

REQUEST FOR DIRECT LOAN ASSISTANCE

PART A – INDIVIDUAL APPLICANT, NOT A LEGAL ENTITY

Instructions: Individual applicants and married applicants with a non-applicant spouse will complete Items 1 through

and 15 are voluntary. *Race, ethnicity, and gender information is requested by the Federal Government to monitor FS

with Federal laws prohibiting discrimination against applicants. Applicants are not required to furnish this information b

encouraged to do so. Failure to provide this information may result in not receiving targeted funds for which the applic

eligible. This information will not be used to evaluate this application.

1. Exact Full Legal Name 2. Email Address

3. Mailing Address (Including Zip Code) 4A. Physical Address (If different than mailing addr

4B. County of Residence

Same as Physical Address: YES NO

5. Contact Telephone Numbers (Area Code): 6. County of Operation Headquarters 7. Date of Birth (M

Home: Primary

Cell: Primary 8. Social Security Number (9 digits)

Business: Primary

9. Name and Address of Employer (If applicable) 10. Applicant Is: *11. Race:

U.S. Citizen America

National Asian

This form is available electronically. Form Approved – OMB No. 0560-0237 

FSA-2001

(03-06-15)

U.S. DEPARTMENT OF AGRICULTURE

Farm Service Agency

Position 3 

REQUEST FOR DIRECT LOAN ASSISTANCE

INSTRUCTIONS: FSA suggests applicants use the available corresponding instructions found on the internet at

http://tinyurl.com/kwm5rem for the proper completion of this form. Assistance is also available from local FSA offices for any part of the 

application process. FSA can provide assistance in completing requested forms, explain what information is necessary, and answer any 

questions regarding the application process.

 

Farm Loan Teams located at USDA Service Centers or FSA County Offices are responsible for all direct loan applications. You can find 

the address and telephone number of the nearest Farm Loan Team serving the County where you plan to farm from the Internet at

http://tinyurl.com/7syle36. 

The Federal Government requests race, ethnicity and gender information to monitor FSA’s compliance with Federal laws prohibiting 

discrimination against applicants. Applicants are encouraged to furnish this information. This information is not used to evaluate an

application and choosing not to provide this information will not affect the application process. 

Targeted funding is available to any member of a targeted underserved group. Targeted underserved groups include American Indians

or Alaskan Natives, Asians, Blacks or African Americans, Native Hawaiians or other Pacific Islanders, Hispanics, and Women. Targeted 

funding may not be received if an applicant fails to voluntarily provide race, ethnicity and gender information. 

IMPORTANT NOTICE

Within 10 calendars days of the date FSA receives your application, FSA will send you 

a letter that will tell you if your application is complete, or additional information is

needed to complete your loan application. Incomplete applications cannot be

processed. If you do not receive this letter within 10 days of the submission of your

application, please contact your local FSA office.

APPLICANT IDENTIFICATION 

The loan application must be submitted in the name of the ACTUAL OPERATOR of the farm or ranch 

An individual who operates as a legal entity, or two or more applicants operating and applying jointly, are considered an ENTITY

applicant. 

Married persons are considered joint operations if the day-to-day management and operation responsibilities of the farm enterprise are 

shared. Married couples who wish to apply together and have not formed an operating entity such as a partnership, LLC, trust or 

corporation, are to proceed as designated below. Married couples who have formed a legal entity as part of the farm or ranch should 

complete this application as an entity applicant. 

The Applicant is a/an: 

• Individual, Not Married, Not Operating as a Legal Entity. BEGIN at PART A.

• Individual, Operating as a Legal Entity. BEGIN at PART C.

• Married Couple, One Spouse Applying. BEGIN at PART A.

• Married Couple, Applying Jointly, Not a Legal Entity. BEGIN at PART B.

• Joint Operation, Two or More Persons, Not Married, Not a Legal Entity. BEGIN at PART C.

• Entity Applicant. BEGIN at PART C.

NOTE: Entity Applicants are required to provide supporting documentation such as, and not necessarily limited to, Articles of 

 Incorporation; Articles of Organization; Certificate of Limited Partnership; Formal Partnership Agreement; By-Laws and 

 Operational Authorities of all shareholders, members and owners to verify the legal status of the entity, the authority of the 

 shareholders, members or owners, and the composition of the entity structure(s). 

PLEASE KEEP THIS PAGE FOR YOUR RECORDS 
Your Guide to FSA Farm Loans

Form Title Description of Use

FSA-2001

Request for Direct Loan Assistance

FSA-2002

ree-Year Financial History

FSA-2003

ree-Year Production History

FSA-2004

Authorization to Release Information

FSA-2005

Creditor List

FSA-2037

Farm Business Plan

Worksheet Balance Sheet

FSA-2038

Farm Business Plan

Worksheet Projected Actual Income

and Expense

FSA-2302

Description of Farm Training

and Experience

Used to obtain general information regarding your

business, and the amount and planned use of the loan

requested.

Used to gather 3 years of financial history for your

operation.

Used to gather 3 years of production history for your

operation.

Authorizes your employers, financial institutions, and

creditors to verify and provide FSA with your

employment, income, or other financial information in

connection with submission of your application.

Used to gather information regarding your creditors.

Used to gather information on your assets and liabilities.

Used to gather your income and expense information.

Provides details on your farm or ranch training and

experience if you are a new applicant or are adding a

new enterprise to your operation.

43
Your Guide to FSA Farm Loans

Additional Requirements Description of Use

Tax Returns (3 years)

Leases and Contracts

Environmental Compliance

Credit Report Fee

Other Documents

e income and expenses reported on your tax

returns will be used to evaluate your business

history.

Farm lease, rental agreements, or other

contracts that affect the operation of your

business.

An FSA loan official will help you in

determining if you have met all applicable

environmental regulations and requirements.

You will have to pay a credit report fee so FSA

can obtain your credit history. e amount of

the fee varies, depending on the structure of

your business and how many people are

applying for the loan.

In addition to the above forms and documents,

FSA-2309, Certification of Disaster Losses, is

needed to apply for Emergency Loans.

For entity applicants, additional information

will be required of each member of the entity.

Entity applicants will need to discuss the

structure of the business with an FSA

loan official.

Note: Additional forms and documents may be needed. Your FSA loan official 

will advise if additional information is required.

44
Your Guide to FSA Farm Loans

Note: Additional forms and documents may be needed. Your FSA loan official 

will advise if additional information is required.

45

A direct operating microloan application includes the following forms and 

documents:

Form Title Description of Use

FSA-2330

Request for Microloan Assistance

Used to obtain information on applicants applying for

Microloan assistance, such as general information,

financial information, and farm training.

Additional Requirements Description of Use

Environmental Compliance

Financial and Production Records

Credit Report Fee

Other Documents

An FSA loan official will help you in

determining if you have met all applicable

environmental regulations and requirements.

Financial and production records for the most

recent production cycle, if available and

practicable, to project the cash flow of the

operating cycle. (Some or all of this information

may have already been provided on FSA-2330).

You will have to pay a credit report fee so FSA

can obtain your credit history. ­e amount of

the fee varies, depending on the structure of

your business and how many people are

applying for the loan.

For entity applicants, additional information

will be required of each member of the entity.

Entity applicants will need to discuss the

structure of the business with an FSA loan

official. 

Other Documents For entity applicants, additional information

will be required of each member of the entity.

Entity applicants will need to discuss the

structure of the business with an FSA loan

official.
Your Guide to FSA Farm Loans

A direct farm ownership microloan application includes the following forms 

and documents:

46

Form Title Description of Use

FSA-2330

Request for Microloan Assistance

Used to obtain information on applicants applying for

Microloan assistance, such as general information,

financial information, and farm training.
Your Guide to FSA Farm Loans 47

Additional Requirements Description of Use

Environmental Compliance

Credit Report Fee

Financial and Production Records

Documents for the Property or Option

To Purchase Agreement

Verification of Farm Experience

Other Documents

An FSA loan official will help you in

determining if you have met all applicable

environmental regulations and requirements.

You will have to pay a credit report fee so FSA

can obtain your credit history. e amount of

the fee varies, depending on the structure of

your business and how many people are

applying for the loan.

Financial and production records for the most

recent production cycle, if available and 

practicable, to project the cash flow of the

operating cycle. (Some or all of this

information may have already been provided

on FSA-2330).

Documents for purchase or improvement of

real estate.

To verify participation in the business operations

of a farm or ranch for at least 3 out of the last

10 years.

Note: Discuss your particular situation with

an FSA loan official as there are several ways

that you may meet this requirement.

For entity applicants, additional information

will be required of each member of the entity.

Entity applicants will need to discuss the

structure of the business with an FSA loan

official. 

Note: Additional forms and documents may be needed. Your FSA loan official 

will advise if additional information is required.
Your Guide to FSA Farm Loans

Submitting Your Direct Loan Application

You may submit your application:

• by calling for an appointment with an FSA loan official;

• by mailing, faxing, or delivering your application to your local FSA office; or

• electronically, if you have registered through the e-Gov system.

Note: When you submit a loan application, the FSA loan official will give 

you a Receipt of Service. For more information on submitting your loan 

application electronically, please visit the website 

https://forms.sc.egov.usda.gov/eForms/welcomeAction.do?Home.

48
Your Guide to FSA Farm Loans 49

What Happens After You 

Submit Your Direct Loan 

Application to FSA?

How FSA Processes Your Direct Loan 

Application

FSA will: 

• review your application to determine if all 

required forms and documents have been 

submitted.

• notify you in writing, within 10 days after 

receiving your application, if any items are 

missing.

• notify you in writing, within 10 days of receiving 

all forms and documents, that your application is 

complete.

• make a final decision on your application 

within 60 days of receiving all required forms and 

documents.
Your Guide to FSA Farm Loans

Helpful Hints: 

• When the FSA loan official schedules a meeting 

to discuss your loan request, be sure to ask 

your loan official questions if there is anything 

you do not understand. FSA may provide 

technical assistance or refer you to a 

subject-matter expert.

• If you are not satisfied with the level of service 

that you are receiving from the local FSA office, 

you may contact the applicable FSA State Office 

or FSA National Headquarters. The contact 

numbers for these offices may be found at 

https://www.fsa.usda.gov.

50
Your Guide to FSA Farm Loans 51

If Your Direct Loan Is Approved

If your direct loan is approved, FSA will notify you 

in writing of:

• the approved use of loan funds

• the interest rate

• the term of the loan

• the collateral that you will have to pledge to 

secure the loan

• when the money is expected to be available

• any pre-loan closing requirements

• your responsibilities as an FSA direct loan 

borrower.

You will need to sign and return the letter accepting 

the loan conditions.

Helpful Hint: Make sure you understand all the loan 

conditions and your responsibilities as a borrower. 

Contact your FSA loan official if you have any 

questions.
Your Guide to FSA Farm Loans

FSA will schedule your loan closing as soon as 

possible after your loan is approved. Normally, 

loan funds are available within 15 days of approval. 

However, FSA receives funding for loans on a fiscal 

year basis, and the demand for some loan types may 

exceed the level of funding received. When this 

occurs, your loan will be approved subject to the 

availability of funding, but it cannot be closed until 

additional funding is received.

Note: The fiscal year begins on October 1 of each 

year and ends on September 30.

Operating loans will be closed by your FSA loan 

official.

Farm ownership loans will be closed by an attorney 

or title agency of your choice. However, if a lien will 

be taken on tribal lands held in trust or restricted 

status, a Title Status Report and approval of the lien 

from the Bureau of Indian Affairs is required.

At closing, you will sign several documents, 

including a promissory note and lien instruments to 

secure the loan. Keep all of your loan documents, 

loan closing paperwork, and financial records 

together in a safe place so you can find them easily.

52
Your Guide to FSA Farm Loans 53

If Your Direct Loan Is Not Approved 

If your direct loan is not approved, FSA will notify 

you in writing of:

• the reason your loan cannot be approved.

• your opportunity to request:

- reconsideration, which provides you with the 

 opportunity to meet with the FSA loan official 

 to present additional information and explain 

 why you believe FSA’s decision may be in 

 error;

- mediation, which is a process for resolution 

 of a disagreement. A trained neutral mediator 

 assists two or more parties who disagree 

 by looking at the issues, considering all 

 available options, and attempting to agree 

 on an acceptable solution;

- an appeal to the National Appeals Division, 

 which is an independent organization within 

 USDA, where you may present evidence that 

 demonstrates why you believe that FSA’s 

 decision may be wrong.

• your rights if you believe you have been 

discriminated against under the Federal Equal 

Credit Opportunity Act or USDA regulations.
Your Guide to FSA Farm Loans

Note: If your loan is not approved, your FSA loan official may be able to advise 

you of potential actions or alternatives that might help resolve the issues that 

resulted in the denial of your loan request.

54
Your Guide to FSA Farm Loans 55

What Are Your 

Responsibilities as a Direct 

Loan Borrower?

After you receive a direct loan, it is your 

responsibility to:

• follow the business plan on which your loan was 

based; it is your blueprint for success.

• always make your loan payment on time. If you 

cannot make payments to suppliers, other 

creditors, or FSA on time, contact your FSA loan 

official immediately to discuss loan servicing 

options that may be available to assist you.

• keep good business records that include all:

- farm operating and family living expenses.

- income from crops, livestock, and other 

 sources.
Your Guide to FSA Farm Loans • maintain loan security, which includes: - keeping livestock safe, healthy, and well fed. - maintaining all real estate, buildings, and 

 machinery. - paying insurance, real estate taxes, and other 

 taxes when due. - not placing any additional liens or 

 encumbrances on the property that you 

 pledged as collateral to secure your loan 

 without first getting FSA’s permission. • attend any required production and/or financial 

management skills training.

• talk with your FSA loan official to change your 

business plan: - if you need to make expenditures not included 

 in the business plan or need to change it for 

 any reason. - if you plan to sell any portion of your crop 

 and/or livestock in a different way than 

 described in your business plan. - when you propose to sell or trade any 

 equipment. • have checks you receive from buyers made jointly 

payable to you and FSA. (FSA will release these 

proceeds to you in accordance with your business 

plan.)

56
Your Guide to FSA Farm Loans 57

What Credit Supervision 

Does FSA Provide to Direct 

Loan Borrowers?

FSA will provide oversight, technical assistance, and 

management expertise to assist in various ways in 

your success while also protecting the Government’s 

interest. 

Year-End Analyses

At the end of each business or production cycle (the 

time it takes to produce an agricultural commodity 

from the beginning of production until it is normally 

disposed of or sold), your FSA loan official will make 

an appointment with you to:

• review your records;

• help you plan for the following year’s operation, 

including determining if you need additional loan 

assistance from FSA; and

• help you review your business plan and make any 

changes.
Your Guide to FSA Farm Loans

Chattel Checks

During the year, FSA officials may make periodic 

reviews or “chattel checks” to look at crops, 

equipment, and livestock that you have pledged 

as security or collateral for your loan. FSA will 

also work with you to account for your livestock, 

equipment, and other collateral and to make sure 

that the livestock are healthy and equipment is in 

good repair.

Normal Income Security

Normal income security is the crops and livestock, 

that FSA financed, that you produce on your farm or 

ranch. The income from the sale of this security can 

be released to you in accordance with your business 

plan.

Basic Security

Basic security refers to real estate, equipment, 

machinery, and foundation and breeder livestock, 

herds, and flocks that secure your loan. This 

property must be maintained and kept in good 

repair throughout the term of the loan. It is also very 

important that you do not sell or trade any of this 

security property without discussing it first with your 

local FSA office.

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Your Guide to FSA Farm Loans

Graduating to Commercial Credit

FSA provides temporary credit to assist farmers or 

ranchers when they cannot get commercial loans. 

When you make sufficient financial progress to 

operate without FSA assistance, you will be asked 

to graduate by refinancing your FSA loans with a 

commercial lender. This can be accomplished with 

or without an FSA guarantee on the commercial 

loan.

59
Your Guide to FSA Farm Loans 60

What Loan Servicing Options 

Are Available to Direct Loan 

Borrowers?

If it appears that you will not be able to make a 

scheduled payment, or you become delinquent on 

your FSA loan, FSA offers servicing options to help 

you avoid or resolve the delinquency.

Disaster Set-Aside (DSA)

If your operation is in a disaster area designated 

by the President, Secretary of Agriculture, or FSA 

Administrator, FSA can move one annual payment 

to the end of your loan if you are not able to make 

the payment on schedule. This set-aside payment 

will include the unpaid interest and any principal 

due for that payment. Interest will accrue on 

any principal portion of the set-aside at the same 

rate charged on the balance of the loan. FSA will 

inform you of the availability of a disaster set-aside 

by mail and through news releases if your county is 

designated.
Your Guide to FSA Farm Loans 61

Example: Sarah Thompson believes that she will not 

be able to make all her scheduled payments, and she sees 

an announcement in the paper that her county received 

a disaster designation. She can go to the local FSA office 

and inquire about applications for both emergency 

loans and DSA, even if she has not yet received her DSA 

announcement directly from FSA. An FSA loan official 

can assist her in determining if she qualifies for an 

emergency loan and a DSA. 

Primary Loan Servicing (PLS) for 

Financially Distressed and Delinquent 

Borrowers

If you are not able to make your payment or you 

become delinquent on your loan, you may want 

to be considered for PLS. Under PLS, your loan 

may be restructured if your inability to make your 

payment is due to circumstances beyond your 

control.

FSA will notify you of the availability of PLS when 

you become more than 90 days past due on your 

payments and will give you guidance and forms 

needed to apply for PLS. It is very important 

that you read the notice carefully and submit a 

complete servicing application to FSA within 60 

days. Contact FSA if there is anything that you do 
Your Guide to FSA Farm Loans

not understand or if you need help completing your 

application.

Debt write-down may be considered in restructuring 

your loan if you are delinquent.

If you apply for PLS and cannot develop a plan 

that shows you can repay your existing debt, you 

may pay FSA the lower of the current market value 

of the loan collateral or the full amount you owe. 

If you are unable to pay the lower of these two 

amounts, then FSA will be required to move ahead 

with debt collection by declaring the entire debt due 

and payable (acceleration) and eventually selling 

the property you pledged as collateral. During 

this process, FSA may offset any eligible Federal 

payments from USDA or other Government sources, 

which will be credited to your account.

Example: David Jones was a little over 3 months late 

on his FSA loan payments due to adverse weather 

conditions and a crop failure last year. He received 

notification in the mail from his local FSA office 

advising him of available loan servicing options that 

must be requested within 60 days of his receipt of 

the notification. The forms he needs to apply were 

included with the notification. He may want to make 

an appointment with the FSA office or get help from 

62
Your Guide to FSA Farm Loans

a financial or legal professional. If he applies for loan servicing, FSA may be able 

to restructure his annual payments to better match his operation. If he does not 

make his payment or apply for loan servicing, he will be notified of his right to 

request reconsideration, mediation, and/or appeal. If these options do not result in 

a resolution, the Government will move to accelerate (declare his loans due and 

payable), and sell his loan security.

63
Your Guide to FSA Farm Loans 64

How Do You Apply for a 

Land Contract Guarantee?

Preparing Your Land Contract Guarantee 

Application

You may obtain the forms for a land contract 

guarantee application by visiting your local office or 

from the FSA website at https://forms.sc.egov.usda.

gov/eForms/welcomeAction.do?Home.

You will need to complete most of the application 

forms; however, there is one form that will need 

to be completed by the seller. The local FSA loan 

official can help you complete the FSA forms or 

can identify other sources of assistance in your area. 

When you request assistance, the FSA loan official 

will provide you a Receipt for Service.
Your Guide to FSA Farm Loans 65

Submitting Your Land Contract 

Guarantee Application

You or the seller can submit the land contract 

guarantee application to FSA:

• by calling for an appointment with an FSA loan 

official;

• by mailing, faxing, or delivering your application 

to your local FSA office; or

• electronically if you have registered through the 

eGov system.

Note: When you submit an application for a 

land contract guarantee, the FSA loan official will 

provide you a Receipt for Service.

For more information on submitting your 

application electronically, visit the website: 

https://forms.sc.egov.usda.gov/eForms/

welcomeAction.do?Home.
Your Guide to FSA Farm Loans 66

What Happens After You 

or the Seller Submits a 

Land Contract Guarantee 

Application?

How FSA Processes Your Land Contract 

Guarantee Application

After receiving the Land Contract Guarantee request, 

FSA will: 

• review the application to determine if all required 

forms and documents have been submitted and 

notify you and the seller in writing within 10 

days if any items are missing.

• notify you and the seller in writing after receiving 

all forms and documents that your application is 

complete.

If Your Application for a Land Contract 

Guarantee Is Approved

If the application for a land contract guarantee is 

approved, FSA will arrange for you, the seller, and 

the escrow or servicing agent to sign the guarantee.
Your Guide to FSA Farm Loans 67

If Your Application for a Land Contract 

Guarantee Is Not Approved 

If the application for a land contract guarantee is 

not approved, FSA will notify you and the seller in 

writing of:

• the reason it cannot be approved.

• the opportunity to request:

- reconsideration, which provides you with the 

 opportunity to meet with an FSA loan official 

 to present additional information and explain 

 why you believe FSA’s decision may be in 

 error;

- mediation, which is a process for resolution 

 of a disagreement. A trained neutral mediator 

 assists two or more parties who disagree 

 by looking at the issues, considering all 

 available options, and attempting to agree 

 on an acceptable solution;

- an appeal to the National Appeals Division, an 

 independent organization within USDA, 

 where you may present evidence which 

 demonstrates why you believe that FSA’s 

 decision may be wrong.

• your rights if you believe you have been 

discriminated against under the Federal Equal 

Credit Opportunity Act or USDA regulations.
Your Guide to FSA Farm Loans 68

How Will Your Land Contract 

Guarantee Be Serviced?

Escrow or Servicing Agent 

Responsibilities

The escrow or servicing agent will handle 

transactions relating to the land contract between the 

buyer and the seller, including receiving payments 

from the buyer and sending them to the seller. 

Your Responsibilities

You are responsible for complying with the terms of 

the land contract and guarantee agreements. 
Your Guide to FSA Farm Loans 69

Special Considerations for American 

Indian/Alaskan Native Producers and/or 

Any Producer Using Land Held in Trust by 

the Bureau Of Indian Affairs

If you are considering using land held in trust by the United States Government 

through the U.S. Department of the Interior’s Bureau of Indian Affairs (BIA), 

this arrangement should be discussed with the appropriate BIA staff. This 

includes American Indian producers who wish to potentially use allotted trust 

land as collateral to secure their loan, any producer who would lease trust land 

as part of an agricultural operation, or any producer who will enter into a 

contract with a tribe to operate an agricultural operation. To determine whether 

this is applicable, you should use the contact information and website below. 

Bureau of Indian Affairs

Mailing Address:

Bureau of Indian Affairs MS-4606

1849 C Street, N.W.

Washington, D.C. 20240

Website: https://www.bia.gov

Telephone: 202-208-5116

Fax: 202-208-6334
Your Guide to FSA Farm Loans

Appendix A: Resources and Contact 

Information

USDA Agencies

Agricultural Marketing Service (AMS)

Website: https://www.ams.usda.gov

AMS facilitates the strategic marketing of agricultural products in domestic and 

international markets while ensuring fair trading practices and promoting a 

competitive and efficient marketplace. AMS constantly works to develop new 

marketing services to increase customer satisfaction. 

Agricultural Research Service (ARS)

Website: https://www.ars.usda.gov

ARS is USDA’s principal in-house research agency. ARS leads America towards 

a better future through agricultural research and information. 

Animal and Plant Health Inspection Service (APHIS) 

Website: https://www.aphis.usda.gov/aphis/home/

APHIS provides leadership in ensuring the health and care of animals and 

plants. The agency improves agricultural productivity and competitiveness and 

contributes to the national economy and the public health.

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Your Guide to FSA Farm Loans 71

Center for Nutrition Policy and Promotion (CNPP)

Website: https://www.fns.usda.gov/cnpp

CNPP works to improve the health and well-being of Americans by developing 

and promoting dietary guidance that links scientific research to the nutrition 

needs of consumers.

Economic Research Service (ERS)

Website: https://www.ers.usda.gov

ERS is USDA’s principal social science research agency. Each year, ERS 

communicates research results and socioeconomic indicators via briefings, 

analyses for policymakers and their staffs, market analysis updates, and major 

reports.

Farm Service Agency (FSA)

Website: https://www.fsa.usda.gov

FSA implements agricultural policy; administers credit and loan programs; 

and manages conservation, commodity, disaster, and farm marketing programs 

through a national network of offices.
Your Guide to FSA Farm Loans 72

Food and Nutrition Service (FNS)

Website: https://www.fns.usda.gov

FNS increases food security and reduces hunger in partnership with cooperating 

organizations by providing children and low-income people access to food, 

a healthy diet, and nutrition education in a manner that supports American 

agriculture and inspires public confidence.

Food Safety and Inspection Service (FSIS)

Website: https://www.fsis.usda.gov/wps/portal/fsis/home

FSIS enhances public health and well-being by protecting the public from 

foodborne illness and ensuring that the Nation’s meat, poultry, and egg 

products are safe, wholesome, and correctly packaged.

Foreign Agricultural Service (FAS)

Website: https://www.fas.usda.gov

FAS works to improve foreign market access for U.S. products. This USDA 

agency operates programs designed to build new markets and improve the 

competitive position of U.S. agriculture in the global marketplace.

Forest Service (FS)

Website: https://www.fs.fed.us

FS sustains the health, diversity, and productivity of the Nation’s forests and 

grasslands to meet the needs of present and future generations.
Your Guide to FSA Farm Loans 73

National Agricultural Library (NAL)

Website: https://www.nal.usda.gov

NAL ensures and enhances access to agricultural information for a better 

quality of life.

National Agricultural Statistics Service (NASS)

Website: https://www.nass.usda.gov

NASS serves the basic agricultural and rural data needs of the country by 

providing objective, important, and accurate statistical information and services 

to farmers, ranchers, agribusinesses, and public officials. This data is vital to 

monitoring the ever-changing agricultural sector and carrying out farm policy.

National Institute of Food and Agriculture (NIFA)

Website: https://nifa.usda.gov

NIFA’s unique mission is to advance knowledge for agriculture, the 

environment, human health and well-being, and communities by supporting 

research, education, and extension programs in the Land-Grant University 

System and other partner organizations. NIFA does not perform actual 

research, education, and extension, but rather helps fund it at the State and 

local level and provides program leadership in these areas.
Your Guide to FSA Farm Loans 74

Natural Resources Conservation Service (NRCS)

Website: https://www.nrcs.usda.gov/wps/portal/nrcs/site/national/home/

NRCS provides leadership in a partnership effort to help people conserve, 

maintain, and improve our natural resources and environment.

Risk Management Agency (RMA)

Website: https://www.rma.usda.gov

RMA helps to ensure that farmers have the financial tools necessary to manage 

their agricultural risks. RMA provides coverage through the Federal Crop 

Insurance Corporation, which promotes national welfare by improving the 

economic stability of agriculture.

Rural Development (RD)

Website: https://www.rd.usda.gov

RD helps rural areas to develop and grow by offering Federal assistance that 

improves quality of life. RD targets communities in need and then empowers 

them with financial and technical resources.
Your Guide to FSA Farm Loans 75

Online Resources

New Farmers

Website: https://newfarmers.usda.gov

New Farmers helps you find the resources you need to start farming.

Other Organizations

Cooperative Extension System Offices

Website: https://nifa.usda.gov

Each U.S. State and territory has a Cooperative Extension State office at its 

land-grant university and a network of local or regional offices. These offices are 

staffed by one or more experts who provide useful, practical, and research-based 

information to agricultural producers, small business owners, youth, consumers, 

and others in rural areas and communities of all sizes.

Small Business Counselors (SCORE)

Website: https://www.score.org

SCORE, a nonprofit organization, is a network of volunteers who provide 

resources to help entrepreneurs start, grow, and succeed in their business. 

SCORE operates through 364 chapters located throughout the United States 

and provides confidential business counseling services at no charge.
Your Guide to FSA Farm Loans 76

Extension Risk Management Education (ERME) Centers

Website: http://extensionrme.org/

The four regional ERME centers provide funds on a competitive basis to 

extension educators and farm management consultants who have the expertise 

to develop and deliver risk mitigation materials to agricultural producers. The 

Digital Center serves as the clearinghouse for risk management material and 

provides risk management curricula, information, tools, and assistance through 

an online resource called the National Ag Risk Education Library.

Additional Resources for American Indians/Alaskan Natives

Intertribal Agriculture Council (IAC)

Website: www.Indianag.org

The Intertribal Agriculture Council pursues and promotes conservation, 

development, and use of agricultural resources for the betterment of American 

Indians/Alaskan Natives.
Your Guide to FSA Farm Loans 77

Intertribal Agriculture Council (IAC) Regional Technical Assistance 

Program Offices

Website: www.Indianag.org/technicalassistance/ 

Through assistance from USDA’s Office of Tribal Relations, the IAC has 

established Regional Technical Assistance Program Offices. These regional 

offices provide technical assistance and outreach to American Indian/Alaskan 

Native producers and tribes. They provide guidance through the regulations and 

processes of Federal Agencies and:

• train on intensive financial, business, and marketing planning skills and

understanding of basic and advanced farm and ranch business management 

skills to American Indian/Alaskan Native farmers and ranchers;

• train on leasing requirements for tribal trust and restricted lands to 

American Indian/Alaskan Native farmers and ranchers in coordination with 

the Bureau of Indian Affairs; and

• support the deployment of tribal agriculture advocates and technical 

assistance providers in key locations throughout Indian Country, who will 

serve alongside consolidated sub-offices at tribal headquarters, tribal 

agriculture USDA liaisons, third-party regional employees, and others.
Your Guide to FSA Farm Loans

Indian Land Tenure Foundation

Website: https://iltf.org

The Indian Land Tenure Foundation is a community-based nonprofit 

organization focused on the recovery, management, and control of American 

Indian lands by Indian people. They work with Indian people, Indian 

organizations, tribal communities, tribal governments, and others connected to 

Indian land issues.

Indian Land Working Group

Website: http://www.indianlandworkinggroup.org/

The Indian Land Working Group is dedicated to the restoration and recovery 

of the native land base and the control, use, and management of this land base 

by tribal communities.

Note: The information describing these organizations was obtained primarily 

from their websites.

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Your Guide to FSA Farm Loans 79

Appendix B: Definition of Terms

Assets: Property owned by a person, both tangible (for example, land, 

buildings, vehicles) and intangible (for example, training, experience).

Default: The failure of a borrower to observe any agreement with the agency, 

or the lender in the case of a guaranteed loan, as contained in promissory notes, 

security instruments, and similar or related instruments.

Escrow Agent: A third-party agent selected by a seller who has obtained 

a prompt payment guarantee under the Land Contract Guarantee Program. 

Escrow agents must be bonded and may include title insurance companies, 

attorneys, financial institutions, or any fiscally responsible institution as 

determined and approved by FSA.

Family farm: A farm or ranch that produces agricultural commodities for 

sale in sufficient quantities so that it is recognized as a farm or ranch rather 

than a rural residence. Both physical labor and management are provided by 

the borrower, entity member, or family members. Hired labor may be used to 

supplement family labor, such as temporary labor for seasonal peak workloads.

Foreclosure: The act of selling security by a lender, either under the power 

of sale in the security instrument or through judicial proceedings.

Land Contract: An installment contract between a buyer and a seller for 

the sale of real property, in which complete ownership of the property is not 

transferred until all payments under the contract have been made.
Your Guide to FSA Farm Loans 80

Liabilities: Debts that a person or business owes.

Lien: A legally enforceable claim against real or chattel property of another 

obtained as security for the repayment of indebtedness, or an encumbrance on 

property to enforce payment of an obligation.

Promissory note: A written agreement to pay a specified sum on demand 

or at a specified time to the party designated.

Security instrument: Any document giving the agency a security interest 

on real or personal property.

Servicing Agent: A third-party agent selected by a seller who has obtained 

a standard guarantee under the Land Contract Guarantee Program. Servicing 

agents must be bonded commercial lending institutions or similar entities that 

are registered and authorized to provide escrow and collection services in the 

State in which the real estate is located.
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 

https://www.ascr.usda.gov/filing-program-discrimination-complaint-usda-customer 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.

FSA-BK-01 Revised April 2019