The U.S. Department of Agriculture Farm Service Agency in Nevada announces that the loan limit for the Guaranteed Loan Program will increase to $1,214,000.
The limit is adjusted annually based on the Prices Paid to Farmers Index, compiled by the National Agricultural Statistics Service.
"Raising the guaranteed loan limit will all the FSA to better meet the financial needs of eligible Nevada farmers and ranchers," says Clint Koble, director of the Nevada FSA program. "Farming and ranching are capital-intensive business activities, and costs for inputs, fuel and equipment are climbing every year.'
Another change to the guaranteed loan program will affect the one-time loan guarantee fee charged on all FSA loans obligated after Oct. 1, 2011. The one-time loan guarantee fee will increase from 1% to 1.5% of the guaranteed portion of the loan, explains Koble.
Guaranteed loans by FSA allow other lenders to provide agricultural credit to farmers who do not meet the lender's underwriting criteria. Farmers and ranchers apply for a guaranteed loan through a commercial lender, and the lender arranges for the guarantee.
FSA can guarantee up to 95% of the loss of principal and interest on a loan. Guaranteed loans can be used for both farm ownership and operating purposes.
Producers who are unable to obtain financing through a commercial lender or through a guaranteed loan, could be eligible for an FSA Direct Loan.
These Direct Loans have a limit of $300,000 with the exception of Emergency Loans, which have a $500,000 limit. The maximum allowable combined guaranteed and direct indebtedness is now $1,514,000.
The Nevada FSA also alerts producers that the Supplemental Revenue Assistance Program enrollment period for the 2010 (cq) crop year began Nov. 14.
"The SURE program provides a safety net of assistance to producers when disaster strikes," explains Koble. "I encourage Nevada farmers and ranchers with 2010 crop losses to contact their county FSA office to learn more about the program."