Financing is one of the hardest hurdles to overcome as a young farmer. The 2018 farm bill includes some changes that will make it easier for young farmers to do business. Not only does the bill President Trump signed into law on Thursday increase farm ownership loan limits, but it also increases operating loan limits.
Under current law, FSA can guarantee standard operating loans and farm ownership loans up to $1,399,000 and make direct operating and farm ownership loans for up to $300,000. The 2018 farm bill increases guaranteed loan limits to $1,750,000, direct operating loans to $400,000, and direct farm ownership loans to $600,000 which enables farmers and ranchers to maintain, buy and enlarge down payments and construction on new or existing farms or ranches.
In addition, the farm bill extends the Conservation Loan and Loan Guarantee Program. FSA makes and guarantees loans to promote conservation practices on farms and ranches that help protect natural resources throughout the U.S. According to FSA, the bill extends the program to provide access to credit for farmers who need and want to implement conservation measures on their land, but do not have the cash available to implement those practices.
Young farmers can build their management and financial skills at the Tomorrow’s Top Producer conference, Jan. 15-17 in Chicago.
Today only 2.1 million out of a population of 327 million people are farmers. It isn’t a stretch to say that almost no one farms anymore. So why should anyone care about the Farm Bill?
