USDA provides $265 million in loans to Minnesota farmers

The USDA Farm Service Agency in Minnesota provided $265 million in more than 1,700 direct and guaranteed loans to family farmers in Minnesota during fiscal year 2009. This has been a record setting year for number of loans made and dollars loaned.

The funding included more than $5.3 million in direct loans for socially disadvantaged borrowers and $56.8 million in loans for beginning farmers. For purposes of this program, socially disadvantaged groups include women, African Americans, American Indians, Alaskan Natives, Hispanics, Asian Americans and Pacific Islanders. Beginning farmers include those who have farmed less than 10 years.

FSA makes loans to purchase and operate family size farms. Loan funds can be used to finance livestock, farm equipment, annual operating expenses, and most other farm related expense. Interest rates vary from 1.5 percent to 5 percent, depending on loan type.

Applicants must meet eligibility requirements outlined on the agency's Web site at www.fsa.usda.gov. Anyone having questions may contact the local FSA office to obtain information or to schedule an appointment with a loan officer.

In McLeod County, call the FSA office in Glencoe at (320) 864-5178, ext. 2. In Meeker County, the number in Litchfield is (320) 693-2854, ext. 2.