Guaranteed loans are provided by commercial lenders but are guaranteed by FSA. These guarantees are provided on ownership, operating, and conservation loans. Direct loans are directly provided and managed by FSA. Ownership, operating, conservation, and emergency loans are provided through the Direct Loan Program. Land contract guarantees are available to landowners who wish to sell real estate through a land contract to beginning or socially disadvantaged farmers or ranchers.
More information on FSA loan packages for beginning farmers and ranchers is available on the FSA website.
Conservation Reserve Program – Transition Incentives Program
Since its inception in 1985, the Conservation Reserve Program (CRP) has offered annual payments to landowners or renters in exchange for the removal of highly erodible acres from production. Special treatment of CRP land transferring from retired or retiring land owners is available by the Transition Incentives Program (TIP). For land expiring from CRP contracts, TIP provides two additional annual rental payments to retiring landowners on the condition that they sell or rent this land to a beginning or socially disadvantaged farmer or rancher. FSA defines socially disadvantaged farmers and ranchers as those individuals who are members of groups that have historically been subjected to racial or ethnic prejudice. The new owner or renter must return the land to production using sustainable methods.
More information on the TIP program is available on the FSA website.
Natural Resources Conservation Service (NRCS)
NRCS offers various tools that assist farmers and ranchers with implementing conservation practices that help conserve the nation’s air, water, soil, and other natural resources. Programs such as Environmental Quality Improvement Program (EQIP) contain provisions specifically addressing the needs of new and beginning producers. In general, EQIP provides financial and technical assistance to support conservation practices on eligible land. Socially disadvantaged, beginning producers, and veterans may quality for increased payment rates and advanced payments to purchase eligible supplies and materials to implement conservation practices consistent with their EQIP contracts. Specifically in regard to advance payments, EQIP now provides an increase in the limit from 30 to 50 percent of total costs for eligible participants.
More information on EQIP and other NRCS programs is available on the NRCS website.