Kansas Rural Development Council
Farming Programs

The following is a comparison of the various financial assistance programs available for farming. While this has been designed for Beginning Farmers, most of these programs are also designed for the seasoned farmer.

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Financial Assistance Programs for Beginning Farmers

Qualifications

USDA Farm Service Agency (FSA)

USDA Farm Service Agency (FSA)

USDA Farm Service Agency (FSA)

Commercial Lender USDA/FSA Guaranteed Loan

Commercial Lender USDA/FSA Guaranteed Loan

Small Business Administration

Kansas Farm Credit n Services

Kansas Development Finance Authority

Type of Loan

Farm Ownership Beginning Farmer Down payment

Farm Ownership

Farm Operating

Farm Ownership

Farm Operating

7(a) Guaranty Loan Program

Real Estate, Livestock, Operating, Machinery and Equipment

Beginning Farmer Loan Program

Beginning Farmer (Time and experience)

At least 3 years 10 years or less farmland owned <25% average farm size

N/A

N/A

N/A

N/A

N/A

A farmer or rancher who has ten years or less experience at farming or ranching. (This is only for the designation of "beginning" farmer or rancher.)

No ownership exceeding 15% of median sized farm

Maximum

Amount

$200,000

$200,000

$200,000

$700,000 (total all loan types)

$700,000 (total all loan types)

$750,000 Guaranty

Real estate loans are limited to 85% of appraised value (unless a government guarantee is obtained.) Other size limitations would be determined by the overall strengths and weaknesses of the credit requests.

$250,000

Terms

10 years at 4% interest

40 years,

5% or regular rate

7 years,

5% or regular rate

40 years at Lender rate (If in beg. farmer down payment program, fee waived and lender gets 95% guarantee.)

7 years at Lender rate (If in beg. farmer down payment, fee waived and lender gets 95% guarantee.)

25 years maximum

5 to 40 years for real estate loans, up to 10 years for other loans

Negotiated by bank or other lender

Institutional Participation

10% down payment 30% FSA 60% commercial lender or contract seller

Possible - not required

None

Financial Institution must submit package for guarantee

Financial Institution must submit package for guarantee

Financial Institution must submit package for guaranty

100% participation

Bank purchases bond from KDFA, KDFA makes loan to farmer

Eligible Activities

Real Estate

Yes

Yes

No

Yes

No

Yes

Yes

Yes

Livestock (Breeding)

No

No

Yes

No

Yes

Yes

Yes

Yes

Equipment

No

No

Yes

No

Yes

Yes

Yes

Yes

Working Capital

No

No

Yes

No

Yes

Yes

Yes

No

Refinancing/

Consolidation

No

Yes

Yes

Yes

Yes

Yes

Yes

No

Restrictions

10 years maximum must meet eligibility requirements

Must meet eligibility requirements

Must meet eligibility requirements

Must meet eligibility requirements

Must meet eligibility requirements

Size standard annual receipts cannot exceed $500,000

Loans must be for eligible purposes consistent with the Farm Credit Act and subsequent amendments

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Qualifications	USDA Farm Service Agency (FSA)	USDA Farm Service Agency (FSA)	USDA Farm Service Agency (FSA)	Commercial Lender USDA/FSA Guaranteed Loan	Commercial Lender USDA/FSA Guaranteed Loan	Small Business Administration	Kansas Farm Credit n Services	Kansas Development Finance Authority
Type of Loan	Farm Ownership Beginning Farmer Down payment	Farm Ownership	Farm Operating	Farm Ownership	Farm Operating	7(a) Guaranty Loan Program	Real Estate, Livestock, Operating, Machinery and Equipment	Beginning Farmer Loan Program
Beginning Farmer (Time and experience)	At least 3 years 10 years or less farmland owned <25% average farm size	N/A	N/A	N/A	N/A	N/A	A farmer or rancher who has ten years or less experience at farming or ranching. (This is only for the designation of "beginning" farmer or rancher.)	No ownership exceeding 15% of median sized farm
Maximum Amount	$200,000	$200,000	$200,000	$700,000 (total all loan types)	$700,000 (total all loan types)	$750,000 Guaranty	Real estate loans are limited to 85% of appraised value (unless a government guarantee is obtained.) Other size limitations would be determined by the overall strengths and weaknesses of the credit requests.	$250,000
Terms	10 years at 4% interest	40 years, 5% or regular rate	7 years, 5% or regular rate	40 years at Lender rate (If in beg. farmer down payment program, fee waived and lender gets 95% guarantee.)	7 years at Lender rate (If in beg. farmer down payment, fee waived and lender gets 95% guarantee.)	25 years maximum	5 to 40 years for real estate loans, up to 10 years for other loans	Negotiated by bank or other lender
Institutional Participation	10% down payment 30% FSA 60% commercial lender or contract seller	Possible - not required	None	Financial Institution must submit package for guarantee	Financial Institution must submit package for guarantee	Financial Institution must submit package for guaranty	100% participation	Bank purchases bond from KDFA, KDFA makes loan to farmer
Eligible Activities Real Estate	Yes	Yes	No	Yes	No	Yes	Yes	Yes
Livestock (Breeding)	No	No	Yes	No	Yes	Yes	Yes	Yes
Equipment	No	No	Yes	No	Yes	Yes	Yes	Yes
Working Capital	No	No	Yes	No	Yes	Yes	Yes	No
Refinancing/ Consolidation	No	Yes	Yes	Yes	Yes	Yes	Yes	No
Restrictions	10 years maximum must meet eligibility requirements	Must meet eligibility requirements	Must meet eligibility requirements	Must meet eligibility requirements	Must meet eligibility requirements	Size standard annual receipts cannot exceed $500,000	Loans must be for eligible purposes consistent with the Farm Credit Act and subsequent amendments	.