Loans to For-Profit

Farm Cooperatives

Overview

The U.S. Department of Agriculture’s (USDA) 

Farm Service Agency (FSA) offers Direct Loans 

and Guaranteed Loans to farmers and ranchers 

to promote, build, and sustain family farms for 

a thriving agricultural economy. FSA farm loan 

programs are also available to members of forprofit cooperatives.

FSA loans may be used to start, purchase, expand, 

and maintain operations, or to support exciting 

new industry trends, value-added products, sales 

directly to customers, and organic or specialty 

crop operations.

Farm ownership, operating, and emergency loans 

are all available under the Direct Loan Program. 

Farmers may apply for direct loans at their local 

FSA offices.

Farm ownership, operating, and conservation 

loans are also available under the Guaranteed 

Loan Program. Guaranteed loans are made and 

serviced by commercial lenders such as banks, 

Farm Credit System institutions, or credit unions. 

FSA approves eligible loan guarantees and 

provides oversight of lender’s activities. Contact 

a local FSA office for a list of participating lenders.

Who May Borrow

For-profit cooperatives are eligible where: 

• Cooperative members meet all general and 

program-specific eligibility requirements;

• Cooperatives are not larger than a family 

farm if all members are not related by blood 

or marriage;

• Cooperative members either hold the 

majority interest in the co-op or are the 

individual(s) responsible for the day to 

day operations of the co-op, and can 

demonstrate sufficient managerial ability;

• Cooperative members have an individual 

ownership interest in the co-op and are able 

to assume personal liability.

Available Loans

Farm ownership loans may be used to 

purchase or enlarge a farm or ranch; purchase 

easements or rights of way needed for the 

farm’s operation; erect or improve buildings; 

implement soil and water conservation 

measures; and pay closing costs. Guaranteed 

farm ownership loans may also be used to 

refinance debt. The maximum loan amount for 

a direct farm ownership loan is $600,000; the 

maximum loan amount for a guaranteed farm 

ownership loan is $2,236,000.

Operating loans may be used to purchase 

livestock, poultry, farm equipment, feed, seed, 

fuel, fertilizer, veterinary services, chemicals, 

insurance, and other operating expenses, 

including family subsistence. These loans can 

also be used for training costs, loan closing 

costs, and costs associated with reorganizing 

an operation. The maximum amount for 

direct operating loans is $400,000 and the 

guaranteed maximum operating loan amount 

is $2,236,000.

Microloans serve the unique financial 

operating needs of beginning, niche, and 

the smallest of family farm operations. 

Microloans have a total maximum loan 

amount of $100,000: up to $50,000 each or 

farm ownership and operating microloans. 

The microloan is a modified direct loan with 

more flexible access to credit that may benefit 

cooperative members, such as operators of 

Community Supported Agriculture and other 

non-traditional farm operations that often 

face limiting financial options.

More Information

For more information visit, fsa.usda.gov 

or farmers.gov.

Find your local USDA Service Center at 

farmers.gov/service-locator.

USDA is an equal opportunity provider, employer, and lender. OCTOBER 2023