10 Ways How To Get A Farm Loan With No Down Payment - June 2023

10 Ways How To Get A Farm Loan With No Down Payment

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By Samuel Ansah

Last Updated March 22, 2023

If you are making a decision on starting a new or expanding your existing farm here is how to get a farm loan with no down payment. Your farm can start operating and expanding with the help of funding solutions from the US government, commercial lenders, and online banks.

How to get a farm loan with no down payment

USDA Farm Service Agency (FSA) Guaranteed Loans

These loans are backed by the federal government USDA and do not require a down payment.

FSA Direct Loans

These loans are also offered by the FSA and do not require a down payment.

Farm Credit System (FCS) Loans

The FCS is a government-sponsored enterprise that offers loans for farmers and ranchers. These loans may not require a down payment.

State-Sponsored Programs

Many states have programs that offer farm loans with no down payment.


These are small loans that can be used for a variety of farming expenses and do not require a down payment.

Community-Supported Agriculture (CSA)

Some CSA programs allow farmers to borrow money from members with no down payment.

Cooperative Financing

Some farming cooperatives offer financing for farmers with no down payment.

Credit Unions

Some credit unions offer farm loans with no down payment.


Some farmers have successfully raised funds for their farms through crowdfunding platforms.

Personal Savings

Some farmers have been able to save enough money to purchase a farm without a down payment.

It is essential to keep in mind that even though some of the aforementioned loan solutions might not need a down payment, they might still need a decent credit score and other requirements. Before making any commitments, it is also advised to speak with a financial expert or another qualified individual.

How to Qualify for an FSA Microloan

  • You must fulfill the requirements below in order to be eligible for an FSA Microloan:
  • Become a farmer or rancher: The loan is meant for people or businesses who are involved in agricultural production.
  • Good credit score In order to assess your capacity to repay the loan, the FSA will examine your credit history.
  • Have a farm or ranch operation: You must run a farm or ranch operation currently or be planning to do so.
  • Fulfilling the loan limit of $50,000 is the maximum loan amount for an FSA Microloan.
  • The loan is meant for farmers and ranchers who are unable to receive a credit via conventional lending channels. Be unable to obtain credit elsewhere.
  • Meet additional requirements for FSA program eligibility: The applicant must adhere to all standards governing the conservation of Highly Erodible Land and Wetlands as well as all other FSA rules that may be relevant.
  • A business plan is a must: The loan application must be filed with a business plan. It should show both the borrower’s capacity to pay back the loan and the farm’s or ranch’s long-term sustainability.

It is also essential to keep in mind that each FSA office can have special requirements, therefore it is advised to check with your nearby FSA office to make sure you meet all standards.

Source: PoultryABC.com
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