USDA Farm Service Agency (FSA) Direct Ownership Loans are a resource to help farmers and ranchers become owner-operators of family farms, improve and expand current operations, increase agricultural productivity and help with land tenure to preserve agricultural land for future generations.
There are three types of direct farm property loans: regular, installment, and co-financing. FSA also offers a microcredit option for direct farm ownership for small financial needs up to $50,000.
Direct farm property loans can be used to build, purchase or improve farm housing, service buildings or other facilities, and to make essential improvements to a farm.
Applicants must provide the FSA with an estimate of the total cost of all planned developments which fully describes the works, prior to loan approval and must provide evidence of sufficient funds to pay the full cost of all planned developments at closing of the loan or before.
In some cases, applicants may be asked to provide certified plans, specifications or contract documents. The applicant may not incur debt for materials or labor or incur expenditure for development purposes prior to loan closing in the expectation of reimbursement from FSA funds.
Construction and development works can be carried out either under the contractual method or under the borrower’s method. Under the contract method, construction and development contractors perform the work in accordance with a written contract with the applicant or borrower. If applying for a direct loan to finance a construction project, the applicant must obtain a surety bond securing both payment and performance of the construction contract amount from a construction contractor.
A bond is required when a contract exceeds $100,000. An officer of the empowered agency determines that a suretyship appears advisable to protect the borrower against default by the contractor or a contract provides for partial payments exceeding the amount of 60% of the value of the works in place.
Depending on the method of the borrower, the applicant or the borrower will carry out the construction and development works. The borrower method can only be used when the head of the authorized agency determines, on the basis of the information provided by the applicant, that the applicant has or arranges to acquire the skills and managerial capacities necessary to complete the work satisfactorily and that this work will not interfere with the applicant’s work. farm or work schedule.
In Kentucky, the borrower’s method can only be used if the property is considered non-homestead under state law.
Prospective applicants should visit the FSA early in the initial project planning process to ensure environmental compliance.
For more information on eligibility requirements and FSA loan programs, contact your USDA Daviess County Service Center at 270-684-9286 or the USDA Hancock County Service Center at 270-927-6336 or visit fsa.usda.gov.
Elections for the Agricultural Services Agency Committee underway at Daviess, Hancock
USDA Agricultural Services Agency (FSA) Committee elections are underway. It is important that every eligible grower participate in these elections because FSA county committees are a link between the farming community and the USDA.
The 2022 election in Daviess County will be conducted for Representative from Local Administrative Area 1, which is all of eastern Daviess County north of Kentucky 54 East. Applications were received earlier and our two candidates are Silas Deane and Lucas Brey.
Deane has been a farmer for 58 years and has an interest in soil conservation, where he has grown corn and soybeans.
Brey has been a farmer for 30 years, where he produces corn, soybeans, wheat and cattle.
The election in Hancock County will be conducted for representative from Local Government Area 1, which is Lewisport and North West Hancock County west of 271. Our two candidates are Stephen Allard and Stephen Ogle.
Allard has been running his own beef cattle and hay operation for 45 years.
Ogle has been a farmer for 37 years, growing soybeans and tobacco and serving as treasurer of the Hancock County Soil Conservation Board.
Members of the County Committee are an essential part of the operations of the FSA. Committees should be composed of members who reflect the diversity of producers involved in production agriculture in the county they serve. Ballots will be mailed to eligible voters on November 7. The last day to return completed ballots to the service center is December 5.
How to complete the CCC-941 forms
If you have experienced delays in receiving agricultural risk and price loss coverage payments, loan deficiency payments and market gains on marketing assistance loans, this may be due to that you have not completed Form CCC-941, Certification of Adjusted Gross Income.
If you do not have a valid CCC-941 on file for the applicable crop year, you will not receive payments. All Farmers/Tenants/Landlords who have not filed a CCC-941 and have pending payments should immediately file the form with the FSA office in their county of record. Farm operators and tenants are encouraged to ensure that their landowners have completed the form.
The FSA can accept the CCC-941 for 2018, 2019, 2020, 2021 and 2022. Unlike in the past, you must have the CCC-941 certifying your AGI compliance before any payments can be issued.