Iowa farmers are in for a change now that Iowa Agricultural Development Authority loans and Farm Service Agency loans are being reevaluated.

Last Saturday was the Beginning Farmers Network’s Conference which held sessions about topics on how to help educate beginning farmers. Among them was Financing Programs for Beginning Farmers. David Baker, an extension program specialist for the Beginning Farmer Center and FarmOn Programs at Iowa State spoke on behalf of the USDA loans. Baker stated that although Jeff Ward is not part head of the USDA program, the loan is not going away.

Baker told the crowd in the Scheman building that he was one of the USDA development loan’s first participants when he started farming in the 1980s and took another loan halfway through his farming career to purchase land.

Paula Volesky, FSA manager, spoke about her agency’s loans.

These loans are important for students who plan on farming in the near future. Many students interviewed were not aware of the programs or were not sure of all the details in how to apply for one. Kyle Maas, one of the conference attendees, said during the session that “it’s really pretty simple once you get past the seven pages of forms.”

USDA Development Authority

According to its website, the Iowa Agriculture Development Authority was established by the Iowa General Assembly in 1980 to develop and implement programs that assist Iowa farmers. Operating expenses for the authority are derived from modest application and service. It offers three programs available through. These include the Beginning Farmer Loan Program, the Loan Participation Program, and the Beginning Farmer Tax Credit Program.

According to a brochure, the authority’s programs include financing to purchase agricultural land, depreciable machinery or equipment breeding livestock and buildings. Loans may also be used to improve existing buildings or farmland and to improve the environmental management of livestock facilities. The authority’s programs may not be used to refinance existing debt.

FSA

“To apply and be approved for the FSA loans, you have to have a plan and be open to new ideas,” Volesky said.

She said that people need a marketing plan and should be open to non-traditional ideas. A person looking for a FSA loan needs to have accurate information that is up to date and has it ready to go. Volesky said that the loan committee looks for people who have character, capacity to make a profit, have collateral, capital and are reliable. The FSA is also looking into a brand new program dealing with farmers selling on contract to beginning farmers to help ease the transition. This program was developed in hopes to help lighten the load with land prices being at where they are right now with the current economy.

For more information on the loans go to the Iowa Agriculture Development Authority’s official website or the FSA’s official website. To learn more about the Beginning Farmer Center go to the Beginning Farmer Center page on Iowa State’s website.