Farm Bill Raises FSA Loan Guarantee Limit
MOUNT JULIET, Tenn. (DTN) — When President Donald Trump signs the farm bill into legislation on Thursday, among the instant modifications should be a rise to Farm provider Agency loan guarantees and loans that are direct.
«the greatest thing is these provide more freedom,» said Ed Elfmann, senior vice president for ag and rural baking policy in the United states Bankers Association. «The greater amount of freedom you could have, the greater, specially as they operations develop bigger in proportions. We need to understand that ag just isn’t — farms aren’t — small, small, household operations like they was once. They are complex. They may be numerous entities. They are growing in size and scope.»
The Agricultural Improvement Act of 2018 raises FSA loan guarantees to $1.75 million through the current $1.399 million. It doubles the mortgage restriction for direct farm ownership, or estate that is real loans to $600,000 and advances the limitation on direct farm running loans by $100,000 to $400,000.
Elfmann said loan providers frequently utilize a mix of banking services and products to meet up borrowers’ needs. Read more