The Texas A&M AgriLife Extension Service in Travis
County and the U.S. Department of Agriculture’s Farm Service Agency are working
together to inform Central Texas urban farmers about the new USDA Microloan
program.
The new Microloan program is administered through the
Farm Services Agency and provides various low-interest credit options for small
agricultural producers, according to USDA officials. The simplified loan application process and modified
eligibility requirements are well-suited to beginning farmers, ranchers, and
CSA operators, and for farmers wanting to grow “niche crops” to sell to ethnic
markets or farmers markets, it may also provide a means of financing.
Qualifying farmers and ranchers may apply for a maximum
of $35,000 to be used toward initial start-up expenses, USDA officials
explained. And as their needs increase, they may apply for an additional
operating loan of up to $300,000 -- or seek commercial-lender financing from an
institution within its Guaranteed Loan Program.
Officials said farm loans can be used for a variety of
purposes, including buying land, delivery vehicles, livestock, seed, feed and
supplies, or for farm improvements such as wells, coolers, hoop houses, and
irrigation systems.
Producers interested in applying for a microloan should
contact their local Farm Service Agency office. For more information about the
March 5 workshop, contact Trevino atTerri.Trevino@tx.usda.gov.
