Henry English, director of the Small Farm Program at the University of Arkansas at Pine Bluff, reminds farmers and ranchers seeking ownership and farm operating loans that they can seek help at their Farm Service Agency office. Each year FSA sets aside a portion of its loan funds to help underserved applicants, English said.
“For farm loan program purposes, underserved groups are women, African-Americans, American Indians, Alaskan natives, Hispanics, Asians and Pacific Islanders,” English said.
Farm ownership loans may be used to purchase or enlarge a farm or ranch; purchase easements or rights of way; build or improve buildings, such as a home or barn; promote soil and water conservation and development; and pay closing costs.
Operating loans may be used to purchase livestock, poultry, farm equipment, fertilizer and other materials necessary to operate a successful farm. Loans and can also be used for family living expenses, refinancing debts under certain conditions, paying salaries of farm laborers, installing or improving water systems for home livestock, or irrigation use and other similar improvements.
Underserved or beginning farmers and ranchers who cannot obtain credit from a bank can apply for either a FSA direct loan or a guaranteed loan. Direct loans are made to applicants by FSA while guaranteed loans are made by lending institutions who arrange for FSA to guarantee the loan.
Beginning or underserved farmers and ranchers, especially those unfamiliar with the process, may find the application process rather daunting, said English, as the application form is really a series of multiple forms with multiple pages.
For help with the loan process, applicants in Southeast Arkansas can contact multi-county agent Stephan Walker at walkers@uapb.edu or 870-575-7237. Applicants in southwest Arkansas can contact Kandi Williams at klwilliams4@gmail.com at 903-306-8663. Producers can also contact their local FSA office. Also, information is online at www.fsa.usda.gov/farmloans