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FSA guaranteed loans allow lenders to provide agricultural credit to farmers who do not meet the
lender’s normal underwriting criteria. Farmers and ranchers apply for a guaranteed loan through a
lender, and the lender arranges for the guarantee. FSA can guarantee up to 95 percent of the loss of
principal and interest on a loan. Guaranteed loans can be used for both farm ownership and operating
purposes.
Guaranteed farm ownership loans can be used to purchase farmland, construct or repair buildings,
develop farmland to promote soil and water conservation or to refinance debt.
Guaranteed operating loans can be used to purchase livestock, farm equipment, feed, seed, fuel,
farm chemicals, insurance and other operating expenses.
FSA can guarantee farm ownership and operating loans up to $2,343,000. Repayment terms vary
depending on the type of loan, collateral and the producer’s ability to repay the loan. Operating loans
are normally repaid within seven years and farm ownership loans are not to exceed 40 years.
For more information on guaranteed loans, contact the Vineland USDA Service Center at
856-205-1225 Ext.2 or visit fsa.usda.gov.