“Each year, a portion of The Farm Service Agency’s loan funds are set aside to lend to targeted underserved and beginning farmers and ranchers,” said State Executive Director Bob Etheridge. 

“Farming and livestock production are capital-intensive business ventures, and FSA is committed to helping producers start, expand and maintain their agricultural operations,” Etheridge stated.

For farm loan program purposes, targeted underserved groups are women, African Americans, American Indians and Alaskan Natives, Hispanics, and Asians and Pacific Islanders.

Underserved or beginning farmers and ranchers who cannot obtain commercial credit from a bank can apply for either FSA direct loans or guaranteed loans.

Direct loans are made to applicants by FSA. Guaranteed loans are made by lending institutions who arrange for FSA to guarantee the loan. FSA can guarantee up to 95 percent of the loss of principal and interest on a loan. The FSA guarantee allows lenders to make agricultural credit available to producers who do not meet the lender’s normal underwriting criteria.

“During fiscal year 2015, North Carolina FSA obligated over $58 million in loans to assist 442 targeted underserved and beginning producers,” said Etheridge.

The direct and guaranteed loan program provides for farm ownership loans and farm operating loans.

Farm ownership loan funds may be used to purchase or enlarge a farm or ranch, purchase easements or rights of way needed in the farm’s operation, build or improve buildings such as a dwelling or barn, promote soil and water conservation and development and pay closing costs.

Farm operating loan funds may be used to purchase livestock, poultry, farm equipment, fertilizer, and other materials necessary to operate a successful farm. Operating loan funds can also be used for family living expenses, refinancing debts under certain conditions, paying salaries for hired farm laborers, installing or improving water systems for home, livestock, or irrigation use and other similar improvements.

The phone number for the Tyrrell-Dare FSA office in Columbia is 252-796-3701, and for the Washington County office in Plymouth it is 252-793-3870.