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FSA
The Farm Service Agency (FSA) of the U.S. Department of Agriculture (USDA) may guarantee loans that eligible agricultural lenders make to family farmers and ranchers for farm ownership, improvement, and operating purposes. Guaranteed loans are made and serviced by lending institutions subject to credit examination and supervision, such as commercial banks.
FSA provides the ag lender (“you”) with a guarantee covering up to 95 percent of any loss of principal and interest on a loan. The use of an FSA guarantee helps you to serve, or continue with, a farmer who cannot be served on a conventional basis due to risk factors.
Dakota MAC has a group of knowledgeable lenders who can assist your financial institution in putting together a Farm Service Agency guarantee.
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