Farm Service Agency "microloans" are now available

Farmers in Northeast Iowa now can apply for "microloans" from the U.S. Department of Agriculture's Farm Service Agency.

Credit lines of $35,000 or less are now available from the agency. The loan features a streamlined application and a simplified qualification process built to fit the needs of new and smaller producers.  

Winneshiek County FSA Farm Loan Manager Vicky Hinsenbrock says the  smaller loans could be a good fit for start-up or operational needs or for those selling at Farmers' Markets or through community-supported agriculture operations.

The loans can be used to pay for operating  expenses such as hoop houses to extend the growing season, essential tools, irrigation, delivery vehicles, and annual expenses such as seed, fertilizer, utilities, land rents, marketing, and distribution expenses.

The new FSA microloans also carry an interest rate of 1.25 percent and can have a term of up to seven years.