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USDA Farm Service Agency

increases guaranteed loan limit

Sept. 27, 2012 | 0 comments

The loan limit for the Guaranteed Loan Program will increase to $1,302,000 on Oct. 1, according to Brad Pfaff, state executive director for Wisconsin's Farm Service Agency (FSA).

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 state," said Pfaff.

The lending limit increases every year according to an inflation index. The maximum combined guaranteed and direct farm loan indebtedness will also be increased to $1,602,000.

As a reminder, the one-time loan origination fee charged on FSA guaranteed Farm Ownership and Operating loans is 1.5 percent of the guaranteed portion of the loan.

Producers should contact their local FSA County Offices with questions about farm loans or by visiting www.fsa.usda.gov.

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