|
| 1) File Schedule F income on your taxes. FSA needs to see that you are 'actively engaged' in the farming operation. Trading labor for living on one of the farms, or collecting a paycheck from the farm does not qualify. Generally FSA asks for 3 continuous years of Schedule F income. This is not absolute, but certainly helps the situation. Additionally, if asking for a loan for a grain farm, they want to see that your income has been derived from grain farming (not livestock, hay, etc...). So if you are not already selling grain in your own name, you are advantaged to make arrangements with your partners to sell some in your own name in 2010 so you can claim that income on your taxes.
2) Talk to Farm Credit. I'm sure some local banks have a very good rapport with local FSA offices, but Farm Credit does it every year on a National level.
3) Apply early. Funds are there, but applying this year may put you in line to recieve the loan next year (2012 crop).
4) If turned down, don't take it as absolute, rather take it as a way to look at what next steps you need to earn the loan in the future. Then take those steps & make it happen!
5) Keep in mind that some of the FSA loan programs are 'partnerships' with banks. This includes most of the land purchase loans where a portion is from the commercial institution & a portion from FSA. So your question about is it better than a commercial bank, may be answered by saying that borrowing from a blend of both is best due to the lower interest rate from FSA.
If rates continue to go down much more, FSA will be paying YOU to borrow cash! Good Luck! | |
|
FSA Loans
