Farm Service Agency conservation loans available
SPRINGFIELD – Funds are now available for Guaranteed Conservation Loans through the Illinois Farm Service Agency.
Conservation loans allow farmers and ranchers to implement conservation practices on their land that will help protect natural resources.
The loans are not limited to family size farms. Operators who may not normally qualify for an FSA guaranteed farm operating or ownership loan could be eligible for a Guaranteed Conservation Loan.
The loan limit is $1,302,000, and interest rates and terms will vary. The maximum guarantee FSA can issue is 75 percent.
The loans are an alternative to help operators implement any Natural Resources Conservation Service approved conservation practice.
A streamlined application process is available for applicants with a strong financial position. The 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 the NRCS should work with their local NRCS staff to develop one.
As with other guarantees, lenders can reduce risk, increase liquidity and offer lower rates by selling the guaranteed portion in the secondary market.
For more information, call a local FSA office.