LEWISTON — Maine State USDA Farm Service Agency State Executive Director Don Todd III reminds producers that FSA offers specially-targeted farm ownership and farm operating loans to beginning farmers and socially disadvantaged applicants.

“Farming and ranching is a capital intensive business and FSA is committed to helping producers start and maintain their agricultural operations,” Todd said.

In fiscal year 2014, Maine FSA obligated $5.3 million in direct and guaranteed loans to beginning farmers and socially disadvantaged producers.

FSA defines beginning farmers as those who have not operated a farm or ranch for more than 10 years, do not own a farm or ranch greater than 30 percent of the average size farm in the county if applying for a farm ownership loan, and who substantially participate in the operation of the farm.

It defines socially disadvantaged 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.

BF and SDA producers who may not be able to obtain commercial credit from a bank can apply for either FSA direct loans or guaranteed loans. FSA can guarantee up to 95 percent of the loss of principal and interest on a loan. That guarantee allows lenders to make agricultural credit available to producers who do not meet the lender’s commercial underwriting criteria.

Repayment terms for direct operating loans depend on the collateral securing the loan and usually run from one to seven years. Financing for direct farm ownership loans cannot exceed 40 years. Interest rates for direct loans are set periodically according to the government’s cost of borrowing. Guaranteed loan terms and interest rates are set by the lender.

For more information about this program, go to fsa.usda.gov/me