In the United States, the federal government does not typically provide agricultural loans directly to farmers. Instead, it offers various programs and services to support agricultural lending through authorized lenders and agencies. These programs help farmers access loans, insurance, and financial assistance. Some of them are:
The FSA, part of the U.S. Department of Agriculture (USDA), administers several loan programs to assist farmers, including:
These loans help farmers purchase or improve farmland.
Designed to help farmers with various operating expenses and capital needs.
FSA guarantees loans made by approved lenders, making it easier for farmers to access credit.
USDA Rural Development offers loans and grants to promote rural economic development, including loans for rural businesses, infrastructure, and housing, which can indirectly benefit agricultural communities.
The Farm Credit System is a network of agricultural credit associations, including banks, associations, and cooperatives, that provides loans and financial services to farmers, ranchers, and rural businesses. It operates under the oversight of the Farm Credit Administration (FCA).
The RMA administers federal crop insurance programs that help farmers manage risk and protect against crop yield and revenue losses due to natural disasters, pests, and market fluctuations.
Under the CRP, the USDA offers cost-share loans to landowners who enroll eligible land in conservation practices, such as planting cover crops or restoring wetlands.
While not exclusive to agriculture, the SBA offers loans and financing options for small agricultural businesses, including those involved in food processing and marketing.
The USDA and other federal agencies offer programs and loans to support agricultural exports, helping farmers access international markets.
Some CDFIs offer loans and financial services to underserved rural and agricultural communities to promote economic development.
In addition to federal programs, many U.S. states have their own agricultural loan and support programs tailored to the needs of local farmers and ranchers.
Additionally, the following are also provided:
Microloans are small loans that are designed to help small businesses, including farms and ranches. Microloans typically have lower interest rates and shorter repayment terms than traditional loans.
Emergency Loans are available to farmers and ranchers who have suffered financial losses due to natural disasters or other emergencies. These loans can be used to cover expenses such as repairing damaged property, replacing lost livestock, or replanting crops.
Crop insurance is a government program that provides financial assistance to farmers in the event of crop failure due to natural disasters. Crop insurance can help farmers to protect their income and their businesses.