Recently the U.S. Department of Agriculture (USDA) announced an increase limits to loans available to farmers, which could help them get credit to pay for farm equipment.
The USDA's Farm Service Agency (FSA) said that the limit for its Guaranteed Loan Program (GLP) increased to $1.1 million on October 1. The limit for the GLP is adjusted every year based on data collected by National Agricultural Statistics Service.
Lenders who participate in the program get the advantage of having the viability of a loan guaranteed by up to 95 percent of its amount.
"The Guaranteed Loan Program allows commercial and farm credit lenders to extend credit to qualified applicants, who otherwise would not meet their standard lending criteria," The USDA noted.
The FSA also makes loans available through its Direct Loan Program for farmers who can't get credit extended from commercial sources. Most loans available from the program have a limit of $300,000. The loans are funded by money from the federal government.
Agriculture Secretary Tom Vilsack noted recently that $10.2 million is being made available through the FSA's Direct Operating Farm Loans program care of the American Recovery and Reinvestment Act.