FSA and USDA Loan Programs

The Loan Programs for Historically Underserved Ranchers

Some producers have faced barriers to credit and farm programs, and federal and other programs have been designed with them in mind. Here is how to find what is current and prepare.

What does historically underserved mean?

The term is used in agriculture to describe groups that have faced barriers to credit and programs, and agencies define it for each program. Definitions and eligibility rules change, so do not rely on a summary. Read the official language.

This site is independent and not affiliated with any agency. Start at USDA and Farmers.gov, which describe producer programs.

For some producers, trust is part of the story. Past experience with lenders and agencies can make people reluctant to apply, and that is understandable. Recording what you do, asking questions and bringing a trusted advisor can help level the field. Nobody should have to pay to read what the government publishes for free. If a site promises guaranteed approval for a fee, close the tab.

Which loan programs might be relevant?

Federal farm loan programs are described at FSA farm loans, and some include targeted funding or priorities for certain producers, as well as beginning farmer features. Programs and funding levels shift, so confirm what is open.

The Farm Credit network and some banks also have programs for young, beginning or small producers. Ask each lender what they offer.

Program details can include special interest rate features, down payment options or funding targets. These change with law and funding, so confirm at the official source, and ask for the current program handbook if one exists.

• Federal direct and guaranteed loans
• Microloan-type options
• Beginning producer programs
• Local bank and Farm Credit offerings

How do you check eligibility?

Read the program page, then call the local office. Ask what documents prove eligibility, what is covered and what the deadlines are. Keep notes of who you spoke with.

Be wary of anyone who charges a fee to find programs for you. Official information is free.

Eligibility often depends on documents, such as proof of ownership, lease terms, farm records and sometimes self-certification of status. Ask exactly what is needed and what forms are accepted. Do not assume you are ineligible, and do not assume you qualify. Programs look at many factors, and only the agency can say. Asking costs nothing.

How do you prepare an application?

Gather tax returns, a balance sheet, a farm plan, land or lease documents and proof of identity or eligibility. Write a simple plan describing what you will raise, sell and earn. Check your credit report.

The farm money guide covers budgets and records, and the small farm information guide covers starting small.

Organize everything in a single folder, paper or digital. Practice explaining your plan out loud to a friend. Lenders and program staff are people, and a clear, confident story helps.

What other support is out there?

Technical help, training and mentoring can matter as much as money. NRCS offers conservation help, and CSU Extension offers education in Colorado. Nonprofits like National Farmers Union and Farm Aid also list resources.

Local producer groups can offer practical advice and networking.

Peer networks are valuable. Producers who have already been through an application can tell you which questions to ask, which forms cause trouble and which staff are most helpful. Many state and county offices hold workshops where program staff answer questions in person. Ask about upcoming sessions in the Greeley area or near you, and bring your documents.

What if you are denied or treated unfairly?

Ask for reasons in writing and review appeal options. The CFPB publishes information about fair lending, and the Colorado Department of Agriculture may help with referrals. An attorney can advise on rights.

Keep records and try other lenders if needed.

Know that fair lending laws exist at both state and federal levels, and details vary. If you believe you were treated unfairly, ask the agency or a lawyer how to proceed, and keep careful records.

Where do you go next?

Pick two or three programs, call the offices and ask for written requirements. Build your file and keep going even if the first answer is no.

At farm.FM, ranching stories and farm education stories highlight many paths into agriculture, and a story on getting started in ranching is a good read. Talk to a licensed professional about your plan.

Progress can be slow. Keep records of each step, follow up politely and do not take one no as the last word.

Sources and further reading

• USDA: U.S. Department of Agriculture
• Farmers.gov: USDA one-stop site for producers
• FSA Farm Loans: FSA direct, guaranteed, microloan and emergency loan information
• USDA NRCS: conservation programs and technical help
• National Farmers Union: national farm organization
• CFPB: consumer finance protection

Ask locally: Ask your local FSA office and CSU Extension about current programs.

General education only, not financial, legal or tax advice, and Colorado Rancher Loan Guide is not a lender. Rates, terms and deadlines change, so confirm current details with the lender or agency.