The USDA's Farm Service Agency (FSA) serving Lancaster County reminded producers recently that FSA has funding reserved specifically for use by targeted underserved groups and beginning farmers. These loan programs are designed to help farmers purchase and operate family farms.

With these loan programs, FSA hopes to help reverse the declining number of farmers and ranchers across the United States and especially in Lancaster County. These loans aim to encourage and assist people in owning and operating their own farms and ranches, participating in agricultural programs, and becoming integral parts of the agricultural community.

FSA reserves a portion of its loan funds each year for targeted underserved groups. USDA defines a targeted underserved farmer as one of 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. For purposes of this program, targeted underserved groups are women, African Americans, Native Americans and Alaskan Natives, Hispanics, and Asians and Pacific Islanders.

Both direct loans and down payment loans are available. Direct loans are made to applicants by FSA and include both farm operating and farm ownership loans. Repayment terms for direct operating loans depend on the collateral securing the loan; loans usually run from one to seven years, but can be as long as 40 years. The down payment loan program requires the applicant to provide a minimum down payment of 5% in cash, and there is a limit on the monetary amount of the loan. The loan term may not exceed 20 years.

A variety of projects may be funded through farm ownership and farm operating loans, such as purchasing or enlarging a farm, erecting or improving buildings, purchasing livestock or equipment, refinancing debts, and securing medical care.

Individuals, partnerships, joint operations, corporations, and cooperatives primarily and directly engaged in farming and ranching on family-size operations may apply. A family-size farm is considered to be one that a family can operate and manage itself.

Guaranteed loans also may be made for ownership or operating purposes and may be made by any lending institution subject to federal or state supervision.

For full details, contact the local FSA Office at 405 W. Market St., Middleburg, PA 17842 or 570-837-0007.