Farm Loans

UNITED STATES DEPARTMENT OF AGRICULTURE

FARM SERVICE AGENCY

2014 FARM BILL

FACT SHEET

March 2014

Youth Loans

OVERVIEW

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

Agency (FSA) makes operating loans of up to $5,000 

to eligible individual youths ages 10 to 20 to finance 

income-producing, agriculture-related projects. 

The project must be of modest size, educational, 

and initiated, developed and carried out by youths 

participating in 4-H Clubs, FFA, or a similar 

organization.

The project must be an organized and supervised 

program of work. It must be planned and operated with 

the assistance of the organization advisor, produce 

sufficient income to repay the loan, and provide 

the youth with practical business and educational 

experience in agriculture-related skills. 

WHO MAY BORROW

To qualify for a loan, the applicant must:

■ Comply with FSA’s general eligibility 

 requirements; 

■ Conduct a modest income-producing project in a 

 supervised program of work.

HOW LOAN FUNDS MAY BE USED

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

used to:

■ Buy livestock, seed, equipment and supplies;

■ Buy, rent or repair needed tools and equipment; 

■ Pay operating expenses for the project.

WHAT DETAILS TO KNOW

To apply, the applicant must submit completed plans 

and budgets signed by the project advisor and parent 

or guardian along with the FSA application for loan 

assistance. 

These loans:

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

 principal balance owed at any one time cannot 

 exceed this amount);

■ Have an interest rate which is determined 

 periodically, based on the cost of money to the 

 federal government (after the loan is made, the 

 interest rate for that loan will not change);

■ Will be secured, in addition to promissory notes, 

 by liens on the products produced for sale and on 

 

 chattel property, including livestock, equipment 

 and fixtures purchased with loan funds; 

■ Have a repayment schedule which varies 

 depending on the type of project for which the 

 loan is made (For example, if it involves raising 

 livestock or crops, the loan is paid when th

 animals or produce are normally sold). 

FOR MORE INFORMATION

To apply or find out more, visit your local USDA 

Service Center. A listing of centers and more 

information about youth and other loan programs are 

available on the FSA website at www.fsa.usda.gov.

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

against its customers, employees, and applicants for employment on 

the bases 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.