How to Get Government Loans for Dairy Farming

Government farm loans are given through the Farm Service Agency.

Government loans for dairy farming are issued through the U.S. Department of Agriculture's Farm Service Agency (FSA). The FSA offers both guarantees on private loans and direct loans depending on the borrower's needs. With an FSA guarantee, you will get a private loan and the government will back the loan. This option does not involve government funding. When you are seeking financing straight from the government for dairy farming, you will need to locate an appropriate direct loan program.

Things You'll Need

• Good credit
• Down payment
• Farming experience
• Business plan

Instructions

Securing FSA Direct Farm Loans

1. Research direct loan programs. The FSA has four major programs: Farm Ownership, Operating, Emergency and Youth loans. Minorities and young farmers and ranchers may find unique financing options outside of these major categories.

2. Determine if you qualify for the program. Review the program requirements including minimum credit and down payment requirements to see if you qualify. Check the loan limits, which are very rigid in these programs, to see if the loan will be sufficient for your needs.

3. Fill out all application materials for the loan. You can print the forms off the FSA website or go to a local FSA office to receive the forms in person.

4. Submit materials online or at a local FSA office. You may have questions, in which case it is advantageous to submit the forms in person. Mailing in applications can create delays.

5. Follow up throughout the process. The FSA will need to review your business plan, intentions and experience in addition to your financial documents. Delays can be resolved if you stay in contact with the agency to answer questions as they arise.

References

• Farm Service Agency: Direct Loan Program
• Farm Service Agency: Direct Farm Loans