BANGOR — Maine State Farm Service Agency reminds producers that FSA offers specially-targeted farm ownership and farm operating loans to underserved groups.

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

In fiscal year 2014, Maine FSA obligated $5.3 million in direct and guaranteed loans to targeted underserved farmers.

FSA defines targeted underserved as producers 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 farm size in the county if applying for a farm ownership loan, and who substantially participate in the operation of the farm.

Targeted underserved groups are also defined as those whose members have been subjected to prejudice because of their racial, ethnic, or gender identity without regard to their individual qualities.

These groups consist of: American Indians and Alaskan Natives, Asians, Blacks or African Americans, Native Hawaiians or other Pacific Islanders, Hispanics and women.

Targeted underserved producers who may not be able to obtain commercial credit from a bank can apply for either FSA direct loans or guaranteed loans.

Direct loans are made to applicants by FSA. Guaranteed loans are made by lending institutions who arrange for FSA to guarantee the loan. FSA can guarantee up to 95 percent of the loss of principal and interest on a loan.

The FSA guarantee allows lenders to make agricultural credit available to producers who do not meet the lender’s commercial underwriting criteria.

The direct and guaranteed loan program offers two types of loans: farm ownership loans and farm operating loans.

Farm ownership loan funds may be used to purchase or enlarge a farm or ranch, purchase easements or rights of way needed in the farm’s operation, build or improve buildings such as a dwelling or barn, promote soil and water conservation and development, and pay closing costs.

Farm operating loan funds may be used to purchase livestock, poultry, farm equipment, fertilizer and other materials necessary to operate a successful farm.

Operating loan funds can also be used for family living expenses, refinancing debts under certain conditions, paying salaries for hired farm laborers, installing or improving water systems for home, livestock, or irrigation use and other similar improvements.

FMI: [email protected]., www.fsa.usda.gov/me.