Many are born and raised to be farmers, some grew to love such a noble trade. And while many crop and livestock farming corporations emerged in the recent decades, there are still a huge number of farming and ranching families across the United States.
In the latest Farms and Land in Farms 2016 Summary released by the United States Department of Agriculture (USDA) National Agricultural Statistics Service, there are approximately 2.06 million farms in the country. Although the number looks high, it is down by 8 thousand from the previous year.
The same summary reports a 1 million acre decrease in the total land in farms in 2016, now at 911 million acres.
Family Farms Dominate the Agricultural Landscape
Family farms account for 99 percent of the total number of U.S. farms. These agricultural lands are owned and operated by families. The major operators and their relatives possess more than 50 percent of the business assets.
These family farms vary their production from crops to livestock or a combination of these.
Loan Opportunities for Farming and Ranching Families
The Farm Service Agency (FSA) under the USDA provides finance opportunities to for family-sized ranchers and farmers.
Through the agency’s Farm Loan Programs, Family farms can access credit to create, expand and improve family farms and ranches and their operation. Even those who consider urban and rooftop farming can gain access to these programs.
Loan programs vary depending on its use and the borrower. There are farm loans designed for women producers, ethnic minority and racial family farmers and those who are just novices in the farming business
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Programs Interest Rates
As of May 1, 2017, the interest rates of the different loan programs are as follows:
FARM LOAN PROGRAM
|FARM OPERATING||DIRECT||3 %|
|FARM OWNERSHIP||DIRECT||4 %|
|DIRECT, JOINT FINANCING||2.5 %|
|DOWN PAYMENT||1.5 %|
|EMERGENCY LOAN||Amount of Actual Loss||3.750 %|
Data were taken from: www.fsa.usda.gov