U.S. Department of Agriculture (USDA) Idaho Farm Service Agency (FSA) Acting State Executive Director Brian Dansel reminds producers that FSA offers farm ownership and farm operating loans to underserved applicants as well as beginning farmers and ranchers. Underserved or beginning farmers and ranchers who cannot obtain commercial credit from a bank can apply for FSA direct or guaranteed loans.

“Farming and ranching is a capital intensive business and FSA is committed to helping producers start and maintain their agricultural operations,” said Dansel. “FSA loans are designed to make sure that everyone has access to credit including underserved, and beginning farmers and ranchers. Last year, Idaho FSA obligated $59,601,134 in loans to underserved borrowers and beginning farmers and ranchers.”

USDA defines underserved applicants as a group whose members have been subjected to racial, ethnic or gender prejudice because of their identity as members of the group without regard to their individual qualities. For farm loan program purposes, underserved groups are American Indians or Alaskan Natives, Asians, Blacks or African Americans, Native Hawaiians or other Pacific Islanders, Hispanics, and women..

In order to qualify as a beginning farmer, the individual or entity must meet the eligibility requirements outlined for direct or guaranteed loans. Additionally, individuals and all entity members must have operated a farm for less than 10 years. Applicants must materially or substantially participate in the operation. For farm ownership purposes, the applicant must not own a farm greater than 30 percent of the average size farm in the county at the time of application. All direct farm ownership applicants must have participated in the business operations of a farm for at least three years out of the last 10 years prior to the date the application is submitted. A substitution for one year of experience may include a year of postsecondary education in agriculture-related fields, business management experience, or leadership or management experience while serving in any branch of the military.

If the applicant is an entity, all members must be related by blood or marriage and all entity members must be eligible beginning farmers. At least one of the members must have three years or more experience in the business operations of a farm prior to the date the application is submitted.