Farm Service Agency - Honored to Serve America's Farmers and Ranchers

USDA Blog Post:

Posted by Juan M. Garcia, Farm Service Agency Administrator, on April 15, 2014 at 4:00 PM

Several buildings suffer damage from a severe storm on the Goyings farm in Paulding County, OH on June 29, 2012. USDA photo by Christina Reed.

This post is part of a Microloan Success feature series on the USDA blog. Check back every Tuesday and Thursday as we showcase stories and news from USDA’s Farm Service Agency.

For the last few weeks we have shared stories about farmers and ranchers across the country that are benefitting from the Farm Service Agency (FSA) Microloan program. The stories highlighted new farmers starting out on their own, producers who follow a proud family tradition of working the land, and even one farmer who, at 92 years young, is finding new ways to keep growing — all with the help of theMicroloan. The program allows beginning, small and mid-sized farmers to access up to $35,000 in loans using a simplified application process with up to seven years to repay.

Microloans are just one of many ways FSA is helping farmers and ranchers. We also offer Disaster Assistance. Producers around the country have suffered through two and a half difficult years with no disaster assistance because these programs were awaiting Congressional action. With the passing of the 2014 Farm Bill, eligible producers can sign up today to get help.

Implementing these programs has been a top priority. Dedicated staff in more than 2,000 FSA offices across the country stand ready to assist eligible producers to sign up for one of four disaster assistance programs.

The Livestock Indemnity Program (LIP) and the Livestock Forage Disaster Program (LFP) provide payments to eligible producers for livestock deaths and grazing losses that have occurred since the expiration of the livestock disaster assistance programs in 2011, including calendar years 2012-2014. This long-awaited assistance will aid ranchers in states like South Dakota who suffered the loss of thousands of cattle during Winter Storm Atlas last October.

Enrollment also is open for producers with losses covered by the Emergency Assistance for Livestock, Honeybees, and Farm-Raised Fish Program (ELAP) and the Tree Assistance Program (TAP).

Producers should schedule an appointment with their local FSA county office to apply for these programs and to discover other tools and resources offered through FSA to help you meet your goals and grow your operation.

Resources like the Microloan program have proven to be a success for small, beginning and mid-sized farmers. It helps producers pay for initial start-up expenses like hoop houses, essential tools, irrigation, delivery vehicles and annual expenses such as seed, fertilizer, utilities, land rents, marketing and distribution expenses.

By further expanding access to credit to those just starting to put down roots in farming, USDA continues to help grow a new generation of farmers, while ensuring the strength of an American agriculture sector that drives our economy, creates jobs, and provides the most secure and affordable food supply in the world.

Microloan Helps Navajo Couple Continue Farming Tradition

USDA Blog Post:

Posted by Tanya Brown, Writer/Editor, Farm Service Agency, on April 10, 2014 at 3:00 PM

Marilyn and Erik Simpson returned to the Navajo Reservation in Torreon, N.M., to help Marilyn’s aging parents and to grow their own farming operation that would benefit their family.

This post is part of a Microloan Success feature series on the USDA blog. Check back every Tuesday and Thursday as we showcase stories and news from USDA’s Farm Service Agency.

Marilyn Simpson grew up on the Navajo Reservation in Torreon, N.M., where she learned all about farming from her parents who raised sheep and cows.

The youngest of eight children, Marilyn left the reservation, and her parents, to go to college in Arizona. That’s also where she met her husband Erik. After graduating, she and Erik moved back to Torreon to help Marilyn’s parents.

“We saw that my parents were getting older and they needed help with the animals,” said Marilyn, whose parents only speak Navajo. “We eventually took over their operation.”

For 14 years the couple managed her parents’ operation. Now, Marilyn, age 35 and Erik, 39, decided they wanted to start out on their own while still caring for her parents and living on the reservation.

The couple had heard about USDA’s Microloan program. The program allows beginning, small and mid-sized farmers to access up to $35,000 in loans using a simplified application process with up to seven years to repay.

Marilyn and Erik came up with a plan on how much they wanted to borrow and how they planned to back the loan before contacting a Farm Service Agency (FSA) loan officer. After deciding that the Microloan was the best option, they contacted the Torrance County FSA.

Farm Loan Manager Allen Mackrain mailed a microloan application and then drove 2½ hours one way to their home on the reservation to meet with the couple, help answer questions, see the operation and close the loan.

“The Microloan is a great help because a lot of conventional lenders aren’t able to make these loans on the tribal trust lands,” said Mackrain. “A lot of tribal members have grazing and/or farming permits but no way to purchase animals or equipment to utilize the land. This gives them an opportunity to do that.”

The loan allowed the couple to purchase 25 bred cows and rent a bull. That helped expand their herd to 42 cows. They now also have five yearling heifers.

“We wanted something of our own but we also wanted to stay on the reservation and close to our culture,” said Marilyn. The couple has three children, ages 13, 10 and 7, who are learning the Navajo language from their grandparents. “We have a lot of fun and the kids are learning a lot about the animals and their culture. It’s good for them.”

To date, USDA has issued more than 4,900 microloans totaling $97 million. USDA is focused on increasing opportunities for farmers and ranchers and has made several modifications to farm loan programs, including making Microloans to beginning farmers and veterans exempt from direct loan term limits.

Visit the FSA website to learn more about our farm loan programs.

Kentucky Couple Says Thank You Berry Much

USDA Blog Post:

Posted by Tanya Brown, Writer/Editor, Farm Service Agency, on April 8, 2014 at 5:00 PM

Jeff and Kim Essig gave their blueberry farm a boost with a microloan to help purchase equipment that will further expand their operation.

This post is part of a Microloan Success feature series on the USDA blog.  Check back every Tuesday and Thursday as we showcase stories and news from USDA’s Farm Service Agency.

USDA’s Microloan program allows beginning, small and mid-sized farmers to access up to $35,000 in loans using a simplified application process, and up to seven years to repay. Through the Farm Service Agency (FSA) USDA is focused on increasing opportunities for farmers and ranchers and has made several modifications to farm loan programs, including making Microloans to beginning farmers and veterans exempt from direct loan term limits. Producers have more flexible access to credit for initial start-up expenses, family living expenses, minor farm improvements and hoop houses to extend the growing season.

Kentucky couple Kim and Jeff Essig, owners of Middlebridge Blueberry Farm, know about the benefits of the Microloan program first-hand. Kim shares their story:

I married a man who was already in love — with Kentucky.  Although we were both born and raised in Orange County, Calif., he grew up visiting his grandpa Martin’s farm in Oakland, Ky. during summer breaks.

So it was no surprise that six months after our 1992 wedding, we packed up our things and blazed the trail from Southern California to Smiths Grove, Ky., to live on the land.

The first several years we had limited land and dabbled in growing food for ourselves and trading produce with neighbors. In 2006, we were able to purchase a few acres in Bowling Green, Ky.  It was then we started thinking large scale.

We chose blueberries as our main crop.  Between 2010 and 2011 we installed an acre of blueberries and also started beekeeping. By 2013, we added blackberries, raspberries and strawberries. As our berries grew, the customers came as did the idea of branching out into blueberry plant propagation for selling, expanding our bees and maximizing what we could do with our little piece of earth.

One day I saw an announcement for the Kentucky Farm Service Agency (FSA) Microloan program.  I contacted the FSA office for an application. The application process informative, organized, helpful and painless. And Farm Loan Officer Tracy Bailey called and met with us right away.

Looking back over these past two years, we find ourselves very grateful to God for the opportunity to expand our farm and take hold of opportunities that we most likely would have had to pass up if not for the FSA’s Microloan program.

What we found most helpful were the people behind the program. Tracy Bailey, as well as others in the office, really made the process friendly and smooth. The interest rate and payment terms have been key in helping us to grow into our farm vision.

Kim and Jeff Essig

USDA is proud to see the progress that farmers and ranchers are making in their daily operations with the help of the Microloan program. To date, USDA has issued more than 4,900 Microloans totaling $97 million. The microloan program is part of USDA’s StrikeForce for Rural Growth and Opportunity Initiative, our commitment to growing economies, increasing investments and creating opportunities in poverty-stricken rural Kentucky and 19 other states.

The Essig family started with blueberries and later expanded to include blackberries, raspberries and strawberries.

A Small Loan Builds Big Tradition on a Family Farm

USDA Blog Post:

Posted by John T. McComb, Loan Officer, South Carolina Farm Service Agency, on April 3, 2014 at 3:00 PM

William and Thomas Anderson in their current soybean field.

This post is part of a Microloan Success feature series on the USDA blog.  Check back every Tuesday and Thursday as we showcase stories and news from USDA’s Farm Service Agency.

It is often stated that it is hard to start a farm and become a farmer.  You do not have to tell that to Anderson Brothers Grain, LLC.

William and Thomas Anderson of Anderson, S.C., are not only brothers but young, beginning farmers.  At the ripe old age of 18 and 20, the brothers farm 180 acres of small grains–something they have been doing since 2008 when they were teenagers farming 40 acres with assistance from their father Phil Anderson and grandfather William Martin.

Being that young with little collateral and no credit history proved a challenge for the brothers.  They didn’t want to rely on their parents or grandparents to secure financing.

They had enough equipment to plant and harvest their crops, but they were in dire need of additional grain storage to use for the 2013-crop year. A neighboring row crop farmer suggested the brothers contact the local Farm Service Agency (FSA) about a Microloan.

USDA’s Microloan program allows beginning, small and mid-sized farmers to access up to $35,000 in loans using a simplified application process, and up to seven years to repay. USDA is focused on increasing opportunities for farmers and ranchers and has made several modifications to farm loan programs, including making Microloans to beginning farmers and veterans exempt from direct loan term limits.

Within a week, the brothers were able to secure and close a USDA Microloan to purchase a 10,000 bushel grain bin with auger.  The grain bin was constructed by end of May, just in time for harvest season.

“With the wet weather this year, had we not had the grain bin, we would have left half our crop in the field,” said William. “The back log at the local gain storage facility caused an eight to 12 hour wait to unload.  We would have never gotten all our crop harvested without the additional on farm storage.”

Within a week after applying for a Microloan, the Anderson brothers were approved and purchased a 10,000 bu grain bin with auger.

According to William, the grain bin paid for itself this year. Without it they would have lost much more grain due to the tight harvest season.  Although the brothers were not entirely happy with the 2013 production, they did manage 61 bushels per acre in a year plagued by wet conditions during harvest time.

“This is a great example of how FSA can fill a need when commercial lenders cannot; and where FSA can facilitate the growing of our nations next generation of farmers,” said Farm Loan Manager Bob Parris.

To date, USDA has issued more than 4,900 microloans totaling $97 million. Visit the FSA website to learn more about our farm loan programs.

William and Thomas Anderson were able to secure a $35,000 Microloan after local and commercial lenders wouldn’t take a chance on the young farmers.

S.C. Farmer Still Growing Strong after 92 Years, 6 Decades, and 1 Microloan

USDA Blog Post:

Posted by Tanya Brown, Writer/Editor, Farm Service Agency, on April 1, 2014 at 4:00 PM

This post is part of a Microloan Success feature series on the USDA blog.  Check back every Tuesday and Thursday as we showcase stories and news from USDA’s Farm Service Agency.

For Malachi Duncan life as a farmer is anything but boring. At age 92, he’s going strong and ready to do more.

“I was out on the tractor trying to locate a cow,” said Duncan, who farms 43 acres of his family’s land in Union, S.C.  It’s the same land he used to plow with mules before planting cotton, peanuts and corn.

“Back then, we didn’t have any tractors,” said Duncan. “Now, that was hard with long hours.  But we farmed to survive.”

Duncan, a proud farmer for six decades, left the farm during World War II to serve in the U.S. Army in Europe under the command of General George S. Patton. Duncan made his way through France, Germany, Italy and Africa before returning to study economics and history at Benedict College in Columbia, S.C.  He went into the teaching profession and became a Baptist minister with Bethel African Methodist Episcopal church.

Today, Duncan is retired from teaching and ministering.  He’s farming his land, which includes six cows that roam 40 acres of pasture.  His son helps with day-to-day chores.

Last year, when Duncan wanted to buy a bush hog and fertilizer, he talked to Farm Service Agency Loan Officer John McComb about a Microloan.  USDA’s Microloan program allows beginning, small and mid-sized farmers to access up to $35,000 in loans using a simplified application process with up to seven years to repay.

“He started farming over 60 years ago when farming as a minority in the Deep South was a tough business,” said McComb, who assisted Duncan through the short loan process.  “He’s one of the newest Microloan customers, but he has likely seen more changes to American agriculture than most of our customers.”

Duncan said the microloan provided the small amount needed. “They were wonderful and courteous and explained everything I needed to know and what they expected of me,” he said.

Duncan said he has seen more than just physical changes, but the way of life has changed. From the way people raise their children to the way people farm. “People aren’t as compassionate as they used to be,” said Duncan, who raised four children and has eight grandchildren and, as he puts it, “heaven only knows how many great-grandchildren.”

The advice he gives new farmers today? Education is the key. “Farming is big business now. You have to understand it, expose yourself to it and be involved,” said Duncan. “Go into it because you love it. You will only get out of it what you put into it.”

USDA is proud to see the progress that farmers and ranchers are making in their daily operations with the help of the Microloan program. To date, USDA has issued more than 4,900 Microloans totaling $97 million.  The microloan program is part of USDA’s StrikeForce for Rural Growth and Opportunity Initiative, our commitment to growing economies, increasing investments and creating opportunities in poverty-stricken rural communities like Union County, South Carolina and 19 other states.

Visit the FSA website to learn more about our farm loan programs.

Microloan Helps South Dakota Man Transition from Desk to Farm

USDA Blog Post:

Posted by Tanya Brown, Writer/Editor, Farm Service Agency, on March 27, 2014 at 5:00 PM

David Hoff left his job to return to the farm and help his father. The Microloan helped Hoff acquire operating inputs when other lenders wouldn’t take a chance on him.

This post is part of a Microloan Success feature series on the USDA blog.  Check back every Tuesday and Thursday as we showcase stories and news from USDA’s Farm Service Agency.

For David Hoff, farming was in his blood.  It had been 14 years since he worked on his family’s South Dakota farm.  He went off to college, earned a degree in business, landed a position in sales and, over the next 10 years, held leadership positions in sales for several companies.  But he had been thinking long and hard about returning to the 2,000 acre farm and rejoining the family operation.

Then in 2012, Hoff received the sad news of his uncle’s death.  His uncle had farmed with Hoff’s father in Hutchinson County, S.D. for years.  That’s when Hoff decided to return and help his father with the farm.

“This was a big change for us. I was used to bringing home a paycheck every two weeks and now that was going to change in a big way,” said Hoff. “There are no guarantees in farming and you can’t write down what you are going to make each year. My wife likes to have a clear plan and that was a challenge for her to overcome.”

“I explored various options such as putting all the inputs on my credit card and obtaining financing through some other source,” said Hoff. “But those options weren’t an option.”

The high interest on the credit cards would cut into his profits or could potentially lower his credit rating, while commercial lenders wouldn’t take a chance on someone 14 years removed from the farm.  So it was difficult for the new farmer to come up with the money to pay operating inputs.

Then one day Hoff’s father, Joe, took a routine trip to the local Farm Service Agency (FSA) office where he learned about USDA’s Microloan program. The program allows beginning, small and mid-sized farmers to access up to $35,000 in loans using a simplified application process with up to seven years to repay.

“My father discussed my options with an FSA loan officer and found out that the Microloan was a perfect fit for my operation,” said Hoff. “The $30,000 loan allowed us to pay for farm related expenses as well as cost of living support until I was able to market my alfalfa, corn, and soybeans and generate income.”

Now in his second year, Hoff graduated from the Microloan and received an operating loan to purchase equipment and help farm 300 acres of corn, soybeans and alfalfa in 2014.

“My ultimate goal is to continue the family farm. My dad turns 65 this year and slowly wants to step back. I say slowly because he is not quitting farming, but I am taking on a bigger role this year and eventually will make majority of the farm operation decisions,” said Hoff.  “There is no way I could have made this career change without the full support of my wife and I couldn’t have started farming without my mom and dad’s support and guidance. I don’t regret it at all and I wouldn’t change a thing.”

USDA employees are proud to see the progress that farmers and ranchers are making in their daily operations with the help of the Microloan program. To date, USDA has issued more than 4,900 Microloans totaling $97 million. Visit the FSA website to learn more about our farm loan programs.

David Hoff was used to getting a paycheck every two weeks. That changed when he moved back to the farm. The FSA Microloan helped him with cost of living expenses until he was able to sell his crops.

CDFI - Important Part of Infrastructure

USDA Blog Post:

Posted by Tammi Schone, USDA Rural Development, South Dakota, on August 28, 2013 at 5:00 PM

The 8th Annual Governor’s Native American Summit was held last week at Utah Valley University in Salt Lake City, Utah.  Utah’s Rural Development State Director Wilson “David” Conine wanted to share with attendees the importance a community development financial institution (CDFI) can play in tribal development.  He turned to his counterpart, South Dakota Rural Development State Director Elsie M. Meeks who has over 20 years of experience working for Native community economic development.

Meeks recognized CDFI as an important part of the infrastructure for delivering consistent funding for housing and small business development activities that benefit low and moderate income people.  They combine multiple sources of public and private capital in order to make loans and investments available in ways tailored to the particular underserved geographies and types of businesses or borrowers.  Developing capacity among these types of organizations can increase utilization of USDA programs in a region, many of which provide long-term below-market capital for permanent improvements in rural areas.

A successful example from South Dakota includes The Lakota Fund.  A certified Native CDFI established in 1986 that serves the Oglala Lakota Oyate on the Pine Ridge Reservation in South Dakota. Its products and services include microloans, small business loans, business loans, credit builder loans, training, and technical assistance.  Sources of funding from Rural Development include rural business opportunity grants (RBOG), rural business enterprise grants (RBEG), Intermediary Relending Program (IRP), and rural microentrepreneur assistance program (RMAP).

The keynote speaker for the event was Governor Gary Herbert and Meeks was a guest speaker. The Governor’s Native American Summit provides a forum for Utah’s American Indian population to network with state agencies and other organizations, and more importantly, a chance to strengthen relationships with the eight Sovereign Tribal Nations of Utah.

From an Idaho Youth Loan to National Youth Leader

USDA Blog Post:

Posted by Candy Moore, Idaho Public Affairs/Outreach Coordinator, on August 26, 2013 at 11:40 AM

Shane Kerner used an FSA Rural Youth Loan to purchase cattle, including her ‘best show’ heifer shown here. From that point, she built a thriving commercial herd.

Shane Kerner applied for her first USDA Farm Service Agency Rural Youth Loan at age 14. Now, at age 20, she not only reached adulthood, but financial independence to grow what was once a 4-H project into a thriving cattle operation.

“I never thought I would get as far as I am today with my cattle,” said Shane. “It is truly a privilege to have the opportunity to start at a young age and see the growth of your animals from seed stock to a small commercial herd, right outside your door.”

Shane refers to her operation as a passion for finding the highest genetics for breeding Angus cattle. With the proceeds from the sale of seven grass-fed calves she purchased with the youth loan, she bought more cattle, including her best show heifer. This started the foundation for growing a registered Angus herd.

“To be successful in the cattle business, I must carefully breed the highest genetics to result in powerful offspring. That guarantees improvement in the commercial herd and builds reputation in the registered business as well,” said Shane.

Growing her business also involved expanding her herd, which she did by graduating from the youth loan to an FSA Microloan that she was able to secure on her own merits.

“Being able to receive the microloan on my own really made me step back and realize how much I have gained from this experience, personally and professionally,” said Shane.

Shane sells to ranchers mostly in her area and she has built a good reputation with her registered Angus herd, which helps her get a higher price for the bulls. Even her father purchased a yearling for his own commercial stock because he liked the lines and physical features.

Growing up on her parent’s ranch in Weiser, Idaho, has increased her knowledge of the industry and taught Shane the cattle business from the ground up. By the age of 8 she started checking and gathering cattle with her father and eventually began riding pens not long after.

It was that knowledge and entrepreneurial spirit that got Shane elected to the National Junior Angus Association Board of Directors, where she will help other young people who share her passion for Angus cattle. She also plans on learning more about business and marketing when she attends Kansas State University.

“FSA is very pleased that we were able to provide a solid beginning to a great future career for Shane,” said Kim Royer, Washington County FSA Executive Director.

Her success and positive experiences with FSA led Shane’s younger sister Dana and her little brother Sam, to apply for FSA Youth Loans as well.

“The Farm Loan staff made the experience an extremely positive one for the kids,” said Shane’s mother Julie Kerner. “Staff members were informative and helped each one understand how the entire process worked.”