Cyndy Gabriel- PT

Every business tries to guard itself against future losses, especially those that sell products with highly variable market values. Agricultural operations in the United States should know all of the options when it comes to securing agricultural loans, now or in the future, to ensure they will not become financially insolvent because of elements, natural disaster or otherwise, completely out of their own control.

In responses to the declining agricultural contribution to the nation’s GDP, the U.S. federal government has taken serious and comprehensive action to foster new farmers and help current ones stay in business. As a branch of the United States Department of Agriculture, the Farm Services Agency has several programs in place to that struggling farmers can utilize to several different ends.

The main initiative of the FSA is to help farms get off of federal assistance and onto federally insured commercial loans. So instead of a farmer having to rely on federal money to keep his or her operation running, they will be able to meet the criteria necessary to receive funds from the private sector. The FSA works directly with farms that do not yet meet those requirements.

It does this by taking several drastic measure to prevent property foreclosures and coach the business into successful and sustainable practices. Everything from the cattle to the tractors is evaluated and committed to a plan for profitability. Once a farm has applied for and secured commercial sponsorship, the FSA will approve or deny the loan based on what it deems to be reasonable solvency.