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John W. McCauley, State Executive Director for Kentucky’s Farm Service Agency (FSA), announced that the loan limit for the Guaranteed Loan Program increased to $1,355,000 on Oct. 1. The limit is adjusted annually based on the “Prices Paid to Farmers Index,” compiled by the National Agricultural Statistics Service (NASS).
“Raising the guaranteed loan limit will allow FSA to better meet the financial needs of producers across the Commonwealth,” said McCauley.
FSA guaranteed loans allow lenders to provide agricultural credit to farmers who do not meet the lender’s normal 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 percent of the loss of principal and interest on a loan. Guaranteed loans can be used for both farm ownership and operating purposes.
Producers should contact their local FSA Service Center with questions about farm loans or by visiting www.fsa.usda.gov.