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INDIANAPOLIS – Farm Service Agency State Executive Director Julia A. Wickard announced this week that funds are now available for guaranteed conservation loans. The loans allow farmers to implement conservation practices on their land that will help protect natural resources.
“Guaranteed Conservation Loans are a useful tool to help operators implement any Natural Resources Conservation Service-approved conservation practice including, but not limited to, waste-management systems, conservation structures or water conservation measures,” said Wickard. “FSA works closely with NRCS on a variety of programs and this service is one that amplifies that relationship.”
Unlike other FSA guaranteed-loan programs, conservation loans are not limited on farm size.
Operators who may not normally qualify for an FSA guaranteed farm operating or ownership loan could be eligible for a guaranteed conservation loan.
The guaranteed conservation loan limit is $1,302,000 and interest rates and terms will vary. The maximum guarantee FSA can issue is 75 percent.
A streamlined application process is available for applicants with strong financial positions. The streamlined process reduces paperwork requirements and eliminates the requirement to provide a cash flow statement and supplementary documentation.
Interested applicants who do not already have a conservation plan approved by NRCS should work with their local NRCS staff to develop a conservation plan.
As with other guarantees, lenders can reduce risk, increase liquidity and offer lower rates by selling the guaranteed portion in the secondary market.
For questions regarding Guaranteed Conservation Loans, contact the Spencer-Perry FSA office in Rockport at 649-9136.