Posts Tagged: loans
USDA Loans to Help New and Unusual Agricultural Operations
USDA Farm Loan Programs
By providing access to credit, FSA's Farm Loan Programs offer opportunities to family-sized farmers and ranchers to:
- Start, improve, expand, transition, market, and strengthen family farming and ranching operations
- Beginning farmers, racial and ethnic minority farmers and women producers
- Value-added, direct sale, organic, and specialty crop operations
- Young People actively involved in agricultural youth organizations needing financial assistance for income-producing, educational, agricultural projects
- Urban farmers and roof-top producers
- Operations using alternative farming methods such as hydroponics, aeroponics, vertical farming, and freight container farming
https://www.fsa.usda.gov/programs-and-services/farm-loan-programs/
Beginning Farmers and Ranchers Loans
America's next generation of farmers and ranchers are supported through FSA's "Beginning Farmer" direct and guaranteed loan programs. Farm Ownership loans can provide access to land and capital. Operating loans can assist beginning farmers in become prosperous and competitive by helping to pay normal operating or family living expenses; open doors to new markets and marketing opportunities; assist with diversifying operations; and so much more. Through the Microloan programs, beginning farmers and ranchers have an important source of financial assistance during the start-up years.
While FSA is fully committed to all farmers and ranchers, there is a special focus on the particular credit needs of farmers and ranchers who are in their first 10 years of operation. Each year, FSA targets a portion of its lending by setting aside a portion of all loan funds for financing beginning farmer and rancher operations. With the single exception of the Direct Farm Ownership Down Payment Loan, the Beginning Farmer classification is not related to a type of loan program; it references a specific, targeted funding source.
Microloan Programs
The focus of Microloans is on the financing needs of small, beginning farmer, niche and non-traditional farm operations, such as truck farms, farms participating in direct marketing and sales such as farmers' markets, CSA's (Community Supported Agriculture), restaurants and grocery stores, or those using hydroponic, aquaponic, organic and vertical growing methods.
https://www.fsa.usda.gov/programs-and-services/farm-loan-programs/microloans/index/
fruits veg
USDA Fire Loss Programs
USDA's Farm Service Agency (FSA) offers disaster assistance and low-interest loan programs to assist agricultural producers in their recovery efforts following wildfires or other qualifying natural disasters. Available programs and loans include:
- Non-Insured Crop Disaster Assistance Program (NAP)
- - provides financial assistance to producers of non-insurable crops when low yields, loss of inventory, or prevented planting occur due to natural disasters including excessive wind and qualifying drought (includes native grass for grazing). Eligible producers must have purchased NAP coverage for 2017 crops. A notice of loss must be filed within 15 calendar days of when the loss is apparent or 15 calendar days after the normal harvest date.
- Livestock Indemnity Program (LIP)
- - offers payments to eligible producers for livestock death losses in excess of normal mortality due to adverse weather. Eligible losses may include those determined by FSA to have been caused by hurricanes, floods, blizzards, wildfires, tropical storms, tornados lightning, extreme heat, and extreme cold. Producers will be required to provide verifiable documentation of death losses resulting from an eligible adverse weather event and must submit a notice of loss to their local FSA office within 30 calendar days of when the loss of livestock is apparent.
- Tree Assistance Program (TAP)
- – provides assistance to eligible orchardists and nursery tree growers for qualifying tree, shrub and vine losses due to natural disasters including excessive wind and qualifying drought.
- Emergency Assistance for Livestock, Honeybees, and Farm-Raised Fish Program (ELAP)
- - provides emergency relief for losses due to feed or water shortages, disease, adverse weather, or other conditions, which are not adequately addressed by other disaster programs. ELAP covers physically damaged or destroyed livestock feed that was purchased or mechanically harvested forage or feedstuffs intended for use as feed for the producer's eligible livestock. In order to be considered eligible, harvested forage must be baled; forage that is only cut, raked or windrowed is not eligible. ELAP also covers up to 150 lost grazing days in instances when a producer has been forced to remove livestock from a grazing pasture due to wildfire and for beekeepers, ELAP covers beehive losses (the physical structure) in instances where the hive has been destroyed by a natural disaster including flooding, high winds and tornadoes. Producers must submit a notice of loss to their local FSA office within 30 calendar days of when the loss is apparent.
- Emergency Loan Program
- – available to producers with agriculture operations located in a county under a primary or contiguous Presidential or Secretarial disaster designation. These low interest loans help producers recover from production and physical losses.
- Emergency Conservation Program (ECP)
- - provides emergency funding for farmers and ranchers to rehabilitate land severely damaged by natural disasters; includes fence loss.
- HayNet
- - is an Internet-based Hay and Grazing Net Ad Service allowing farmers and ranchers to share ‘Need Hay' ads and ‘Have Hay' ads online. Farmers also can use another feature to post advertisements for grazing land, specifically ads announcing the availability of grazing land or ads requesting a need for land to graze. www.fsa.usda.gov/haynet.
www.fsa.usda.gov/disaster
For more information on these programs, visit FSA online at www.fsa.usda.gov.
To find a local FSA office near you, visit
http://offices.usda.gov.
USDA is an equal opportunity lender, provider and employer.
fire NRCS damage
USDA Announces Streamlined Guaranteed Loans and Additional Lender Category for Small-Scale Operators
USDA recently announced the availability of a streamlined version of USDA guaranteed loans, which are tailored for smaller scale farms and urban producers. The program, called EZ Guarantee Loans, uses a simplified application process to help beginning, small, underserved and family farmers and ranchers apply for loans of up to $100,000 from USDA-approved lenders to purchase farmland or finance agricultural operations.
These EZ Guarantee Loans will help beginning and underserved farmers obtain the capital they need to get their operations off the ground, and they can also be helpful to those who have been farming for some time but need extra help to expand or modernize their operations. USDA's Farm Service Agency has offices in nearly every county in the country.
USDA also unveiled a new category of lenders that will join traditional lenders, such as banks and credit unions, in offering USDA EZ Guarantee Loans. Microlenders, which include Community Development Financial Institutions and Rural Rehabilitation Corporations, will be able to offer their customers up to $50,000 of EZ Guaranteed Loans, helping to reach urban areas and underserved producers. Banks, credit unions and other traditional USDA-approved lenders, can offer customers up to $100,000 to help with agricultural operation costs.
EZ Guarantee Loans offer low interest rates and terms up to seven years for financing operating expenses and 40 years for financing the purchase of farm real estate. USDA-approved lenders can issue these loans with the Farm Service Agency (FSA) guaranteeing the loan up to 95 percent.
California Farmlink is one of the USDA-approved lenders for some of these loans: http://www.californiafarmlink.org/farm-financing
FSA also offers loans of up to $5,000 to young farmers and ranchers though the Youth Loan Program. Loans are made to eligible youth to finance agricultural projects, with almost 9,000 young people now participating.
More information about the available types of FSA farm loans can be found at www.fsa.usda.gov/farmloans or by contacting your local FSA office. To find your nearest office location, visit http://offices.usda.gov.
Low-income Latino students less likely to take on student debt to attend college
The Institute on Assets and Social Policy (IASP) develop an analysis, "Less Debt, More Equity: Lowering Student Debt While Closing the Black-White Wealth Gap," which assesses the effect of public policy on the wealth gap that exists between white and Black households. Wealth inequity has surged over the past several decades, resulting in 1 percent of households controlling 42 percent of U.S. wealth. Also, nearly 50 percent of wealth accumulated over the past three decades has gone directly to pockets of the top 0.1.
Meanwhile, the wealth belonging to the bottom 90 percent of U.S. household continues to lessen. People of color, who are historically disenfranchised and overrepresented in the bottom 90 percent, are growing in numbers. In a matter of short decades, the U.S. will be a "minority majority" nation, which will continue to be affected by preexisting wealth divide. Today, the average white family owns $13 for every $1 held by the average black household and white households own $10 for every $1 held by the average U.S. Latino household.
According to the report, black students tend to take on more debt when attaining postsecondary degrees. They, like other students of color, are more likely to borrow money to attend college, which deepens wealth inequalities. With that said, patterns of student debt differ for black and Latinos students. The report focuses specifically on the black-white wealth gap because of historic roots of inequality and student debt's contribution to wealth disparities, but also acknowledges how inequality influences the experiences of other communities of color in the U.S.
Loan debt and barriers to education impact Latinos differently than black and white households. The data revealed that Latinos attend and graduate from college at lower rates than whites and blacks. Consequently, lower rates of college attendance likely contribute to Latino households owning less student loan debt than blacks and whites. Also, evidence suggests that Latino students are more opposed to taking on student loan debt. Interestingly, Latino students are less likely than blacks and whites to take on debt at public institutions, but they're more likely to take on debt at private for-profit institutions, where they're more likely to depart before completion.
The Latino-white wealth gap could be attributed to differences in education attainment. Latinos households have lower college completion rates and lower levels of household wealth. The report suggests that universal debt reduction policies targeted at borrowers making $50,000 and below would only benefit Latinos moderately; instead white families would have greatly benefit. However, reduction policy targeted at those making $25,000 or less would reduce the racial wealth gap for median and low-wealth Latino households. Latinos in the lowest wealth bracket tend to face a number of barriers when seeking higher education, which reduces the likelihood that they will start college or take out loans. Thus, eliminating some cost challenges should spur enrollment.
The report listed that a number of policies that could make a sizable difference in the lives of students of color. They believe debt-free public higher education should be guaranteed for low-income and middle-class students. Institutional accountability and debt forgiveness should be provided for students attending low-quality institutions. There should be incremental debt forgiveness for students locked into public, low-wage professionals. Also, student loans should be discharged in bankruptcy like other forms of consumer debt.
Source: Published originally on LatinPost.com as Low-Income Latino Students Less Likely to Take on Student Debt, Attend College: Report, by By Nicole Akoukou Thompson, December 1, 2015.
Low-income Latino students less likely to take on student debt, attend college
The Institute on Assets and Social Policy (IASP) develop an analysis, "Less Debt, More Equity: Lowering Student Debt While Closing the Black-White Wealth Gap," which assesses the effect of public policy on the wealth gap that exists between white and Black households. Wealth inequity has surged over the past several decades, resulting in 1 percent of households controlling 42 percent of U.S. wealth. Also, nearly 50 percent of wealth accumulated over the past three decades has gone directly to pockets of the top 0.1.
Meanwhile, the wealth belonging to the bottom 90 percent of U.S. household continues to lessen. People of color, who are historically disenfranchised and overrepresented in the bottom 90 percent, are growing in numbers. In a matter of short decades, the U.S. will be a "minority majority" nation, which will continue to be affected by preexisting wealth divide. Today, the average white family owns $13 for every $1 held by the average black household and white households own $10 for every $1 held by the average U.S. Latino household.
According to the report, black students tend to take on more debt when attaining postsecondary degrees. They, like other students of color, are more likely to borrow money to attend college, which deepens wealth inequalities. With that said, patterns of student debt differ for black and Latinos students. The report focuses specifically on the black-white wealth gap because of historic roots of inequality and student debt's contribution to wealth disparities, but also acknowledges how inequality influences the experiences of other communities of color in the U.S.
Loan debt and barriers to education impact Latinos differently than black and white households. The data revealed that Latinos attend and graduate from college at lower rates than whites and blacks. Consequently, lower rates of college attendance likely contribute to Latino households owning less student loan debt than blacks and whites. Also, evidence suggests that Latino students are more opposed to taking on student loan debt. Interestingly, Latino students are less likely than blacks and whites to take on debt at public institutions, but they're more likely to take on debt at private for-profit institutions, where they're more likely to depart before completion.
The Latino-white wealth gap could be attributed to differences in education attainment. Latinos households have lower college completion rates and lower levels of household wealth. The report suggests that universal debt reduction policies targeted at borrowers making $50,000 and below would only benefit Latinos moderately; instead white families would have greatly benefit. However, reduction policy targeted at those making $25,000 or less would reduce the racial wealth gap for median and low-wealth Latino households. Latinos in the lowest wealth bracket tend to face a number of barriers when seeking higher education, which reduces the likelihood that they will start college or take out loans. Thus, eliminating some cost challenges should spur enrollment.
The report listed that a number of policies that could make a sizable difference in the lives of students of color. They believe debt-free public higher education should be guaranteed for low-income and middle-class students. Institutional accountability and debt forgiveness should be provided for students attending low-quality institutions. There should be incremental debt forgiveness for students locked into public, low-wage professionals. Also, student loans should be discharged in bankruptcy like other forms of consumer debt.
Source: Published originally on LatinPost.com as Low-Income Latino Students Less Likely to Take on Student Debt, Attend College: Report, by By Nicole Akoukou Thompson, December 1, 2015.