FSA Targets Funds for Socially Disadvantaged Farmers
Published 3:58 pm Tuesday, January 25, 2011
The Virginia State Farm Service Agency (FSA) announced the availability of funds for Socially Disadvantaged (SDA) individuals who want to purchase or operate a family size farm in fiscal year 2010.
In Fiscal Year 2010, which ended September 30, 2010, Virginia Farm Loan Programs made 81 SDA loans totaling more than $9,693,720 in farm loans disbursed in Fiscal Year 2010.
“A SDA farmer, rancher or agricultural producer is one of a group whose members have been subjected to racial, ethnic or gender inequality without regard to their individual qualities. SDA members include women, African Americans, American Indians, Hispanics, Asian Americans, Pacific Islanders and Alaskan Natives,” said Calvin Parrish, Acting State Executive Director.
The SDA program provides direct and guaranteed assistance in the form of farm operating and farm ownership loans. Direct loans are made to applicants from FSA. Guaranteed loans are issued by lending institutions, but typically 90 percent of the loan is guaranteed by FSA.
Operating loans may be used to purchase livestock, equipment, feed, seed, and other business related expenses. Repayment terms run from one to seven years.
Ownership loans provide capital to purchase or enlarge a farm, construct or improve buildings; promote soil and water conservation and pay closing costs. Direct ownership loan terms are up to 40 years. Guaranteed loan terms are established by the lender.
Qualified candidates are provided information and assistance to develop sound management practices, analyze problems and utilize available resources essential for successful farming operations to cope with the changing agricultural environment.
SDA loan applicants do not receive automatic approval. Individuals must be U.S. citizens with a satisfactory history of meeting credit obligations; have sufficient education, training or experience managing or operating a farm; possess legal capacity to incur debt; and be unable to obtain credit elsewhere.
Contact your local USDA Service Center or visit the website at www.fsa.usda.gov.
