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   Farm Ownership Loans
   
   With FSA's Direct Farm Ownership Loans, "we keep America's farming growing."
   
   Farm Ownership Loans provide to one hundred percent financing and are an important resource to assist farmers and ranchers purchase or increase the size of family farms, improve and operations, boost farming productivity, and assist with land tenure to save farmland for future generations. With an optimum loan amount of $600,000 ($ 300,150 for Beginning Farmer Deposit), all FSA Direct Farm Ownership Loans are funded and serviced by the Agency through local Farm Loan Officers and Farm Loan Managers. The funding originates from Congressional appropriations as part of the USDA budget plan.
   
   Fact Sheet: Farm Loans Overview (PDF, 807 KB).
   Direct Loan Making Handbook 3-FLP (PDF, 2.5 MB).
   National Agrability Project.
   Farm Answers Library.
   Farmers.gov.
   Frequently Asked Questions
   
   FSA's Direct Farm Ownership loans are utilized to:
   
   - purchase a farm or cattle ranch.
   - increase the size of an existing farm or cattle ranch.
   - make a deposit on a farm.
   - purchase of easements.
   - construct, purchase or improve farm dwellings, service buildings or other facilities and enhancements essential to the farm operation.
   - promote soil and water preservation and protection.
   - pay loan closing expenses.
   There are 3 kinds of Direct Farm Ownership Loans: "regular," joint funding, and down payment depending upon individual needs. FSA likewise offers a Direct Farm Ownership Microloan for smaller sized financial needs.
   
   Direct Farm Ownership Joint Financing Loan
   
   Also called an involvement loan, joint funding allows FSA to supply more farmers and ranchers with access to capital. FSA provides up to half of the cost or value of the residential or commercial property being bought. A commercial loan provider, a State program, or the seller of the farm or ranch being acquired supplies the balance of loan funds, with or without an FSA guarantee.
   
   Direct Farm Ownership Down Payment Loan
   
   Available just to qualified beginning farmers and ranchers and/or minority and ladies candidates, a Deposit loan is a special kind of Direct Farm Ownership loan program that partially funds the purchase of a household size farm or cattle ranch. Beginning farmers do not have to recognize themselves as a minority or woman, and minority and women loan applicants do not need to be starting farmers.
   
   The Down Payment Farm Ownership loan is the only loan program that does not provide 100 percent financing. Down Payment loans need loan candidates to provide a minimum money down payment of 5 percent of the purchase cost of the farm.
   
   As developed by the Beginning Farmer meaning, loan applicants thinking about the Deposit loan may not own more than 30 percent of the typical size farm at the time of the application. The applicant may exceed the 30 percent after the loan is closed. The most present Census of Agriculture information is used in this computation.
   
   The optimum loan amount for a "routine" Direct Farm Ownership loan is $600,000. The optimum loan quantity for a Joint Financing or Participation Farm Ownership loan is $600,000.
   
   Direct Farm Ownership Down Payment maximum loan quantity works differently. The maximum loan amount under this loan program will not surpass 45 percent of whichever is the lower amount of:
   
   - the purchase rate