From: Drabish, Diane - Westminster, MD [Diane.Drabish@md.usda.gov] Sent: Wednesday, October 17, 2007 2:13 PM To: lwvbaltimore@verizon.net; info@carroll.lwvmd.org; info@lwvmd.org; info@harford.lwvmd.org; info@howard.lwvmd.org; web@kent.lwvmd.org; lwvmc@erols.com Subject: Farm Service Agency Farm Loan Programs Available Hello, I am a Farm Loan Officer for the USDA Farm Service Agency, located in Carroll County Maryland. I am interested in speaking with you, or with others you may suggest, to discuss some of the loan programs the Farm Service Agency has available to socially-disadvantaged farmers in central and western Maryland. Socially-disadvantaged farmers include minority groups such as African-Americans, American Indians/Native Americans and Alaska Natives, Asian and Pacific Islanders, Hispanics and Women. FSA assists limited resource and socially-disadvantaged farmers and ranchers to improve their income through better farm management and financial planning. The Farm Service Agency has Direct Farm Ownership and Direct Farm Operating Loans available to assist farmers who are unable to obtain commercial credit. FSA provides credit counseling and supervision to direct farm loan borrowers. The FSA official works one-on-one with the farmer to develop a plan of supervision for the operation in order to overcome weaknesses and achieve goals developed by the farmer, which will ultimately result in the borrower's graduation to commercial credit. Please see our web site for more details at www.fsa.usda.gov. Direct Operating Loans have a maximum indebtedness of $200,000. The repayment term may vary, but typically it will not exceed 7 years for term purposes. Loan funds can be used for normal operating expenses, purchase of machinery, equipment, and/or livestock, real estate repairs, and refinancing debts. Annual operating loans are generally repaid within 12 months or when the commodities produced are sold. Farm Ownership Loans have a maximum indebtedness of $200,000. The maximum repayment term is 40 years. Loan funds may be used to purchase farm real estate, to enlarge an existing farm, to construct new farm buildings and/or improve structures, and to improve the environmental soundness of the farm. Farm Ownership Down Payment Loans are available up to 40% of the purchase price of a family-size farm, or the farm's appraised value, whichever is less. Applicants must provide at least a 10% down payment on the purchase. The interest rate on the 40% portion is fixed at 4%, and it must be repaid in 15 years or less. The remaining balance may be financed by an eligible lender. The purchase price of the real estate may not exceed $250,000. Youth Loans are available as direct loans with a maximum loan amount of $5,000. These loans can be made to youths between the ages of 10 and 20 years old to establish and operate an income producing project of modest size in connection with their participation in 4-H Clubs, FFA, and similar organizations. These loans may be used to finance nearly any kind of income-producing projects. Some common projects include, but are not limited to livestock and crop production, lawn and garden services, repair shops, and roadside stands. Applicants must be capable of planning, managing, and operating the project under the guidance and assistance of a project advisor. The project adviser, needed for a Youth Loan, must recommend the project and the loan, and agree to provide adequate supervision. Eligibility requirements for FSA Direct Loan Programs consist of, but are not limited to, adequate education or experience in the farming industry, inability to obtain credit with a commercial lender, no delinquency on any federal debt, acceptable credit history, and owner or operator of not larger than a family farm after the loan is closed. If you know of anyone who may be able to benefit from any of the Farm Service Agency Programs, please feel free to have them contact me. My office number is 1-410-848-2780 extension 121. I am hoping we can make contact soon to discuss our loan programs in more detail, and perhaps provide you or others with some informational fact sheets. Please feel free to call me at your earliest convenience if you need additional information. Thank you for your time and consideration. Sincerely, Diane L. Drabish Farm Loan Officer Farm Service Agency Westminster, MD 21157 1-410-848-2780, extension 121 Diane.Drabish@md.usda.gov