FSA Loans

[renegade]

There are some loans offered to small farmers around here... especially for youth... and they are called FSA loans. I was gonna look into one because it would work pretty well for me, apperently you take out the loan and you dont have to pay on it until your animals/crops sell. I was going to take one out for some NECCESSITY (maybe not to some but to me i really think to get as big into showing as i want to i need these) show supplies and a foundation heifer. With this money I want to buy a blower and try and find a cheap blocking chute, and buy a foundation heifer at this hereford show in march. I have been offerd to ride with a breeder to utah to compete for a new foundation show where last year prizes added up to $10,000. I want to then breed her to my remitall bull and hopefully get some GREAT show stock. I was just wondering if anyone has used one of these loans and if you know of any other loans like this.

 

[cowz]

I am familiar with these.  They are capped at $5000.  You may not use these for equipment.  Livestock only.  The payment is approx $875 per year for 6 years.
They will put a lien on all livestock, horses too, owned by the child.

 

[RSC]

I am familiar with these.  They are capped at $5000.  You may not use these for equipment.  Livestock only.  The payment is approx $875 per year for 6 years.
They will put a lien on all livestock, horses too, owned by the child.

Do you know how young the child can be and apply for this loan?

Thanks,

RSC

 

[cowz]

Here it is 10 years old.  This can be a problem here because they have to be 12 to have a checking account.  They like to wire the funds directly into the kid's acct.

 

[renegade]

It isnt quite what i thought it was then. That would be great to buy a foundation heifer but i really need to get a loan to start buying all of the show stuff i need. I dont really want to get a bank loan though. I dont know i might just have to wait until i sell steers this year but that would make it hard with all of the jackpots i want to do. I will talk to my advisor and see if she knows about anything but the answer i usally get from her is "I dont know, look it up"

 

[kanshow]

I *think* some of the farm credit services and some banks have start up loans for youth.  You might check with them. 

 

[pigguy]

i would check with your fsa office, because obviosly its differnt all over the place. be cause here you can use it to but what ever you need as long as you have a plan.

 

[renegade]

My advisor said she would wait and see if they send her anything, other than that she wasnt interested in helping. There are some kids in our chapter that were looking into them last year, i dont know how far they went but i will ask them.

 

[Show Heifer]

I would advise against a FSA loan. First off, your dealing with the gov't...never a good thing IMO.
Also, SOME, loan programs such as this are a one time deal. So if you get one now, that will disqualify you for a future loan.  Just a thought
Most banks have a youth loan program.

 

[ATOZ]

This web site explains how the "Youth Loan " works.   www.fsa.usda.gov   ---  then on the right side of the screen click on "Direct Farmer Loans" then after the new page comes up,again on the right side of the screen, click on " Youth Loans". Hope this helps and i believe the rate is around 4.5% annually.

 

[cowz]

Just 3 more comments:

1.  The FSA youth loans are renewable.  Just pay off the first one and you can do another one.  Participation in the youth program does NOT negate your eligibility for any other FSA loan or program. (Paper work on youth loans is not bad.)

2.  Do not be afraid of Govt loans.  They just require very exact bookkeeping.  Most who do not do well with govt loans are not keen on  record keeping.

3.  Most small town banks will make small loans to 4-H or FFA members, usually due after their fair sale.

 

[Jill]

I'm going to add my 2 cents and not everyone will agree but here goes.  I would not make a loan for show equipment, it will never generate any income!  If you want to invest in yourself and your program purchase the best heifer you can you can afford and borrow or maybe lease someones equipment, your heifer should be able to generate enough income to pay loan expenses, just remember great show stock generally doesn't come from mediocre cattle so spend your money wisely.  Good luck to you!

 

[fluffer]

I agree with Jill here as well.  Don't get a loan on something that won't turn out some $$$.  But make sure you insure ANYTHING you have a loan on.  If you do buy a heifer and she dies some how (god forbid) you will want to make sure you have a way to pay.  FSA may require this, I don't know for sure, but just a thought.

 

[renegade]

The FSA loans around here do allow me to buy equipment with the loan. I am going to have several people that are VERY experienced with show cattle help me pick a heifer, the program that i would be buying her for is a great oppurtunity. What happens is you buy a heifer that has been nominated for this by certain breeders, you go to as many shows as possible (but its capped at 150 points, so that even if you arent rich you still have a good chance at winning), take her to utah in september and if you win your division its like a couple of hundred dollars, if u then win your breed it like 2000 and if you win overall i think its like 4000 and i guess there was only like 12 heifers last year. if  i do get a loan the latest it would be paid back (in full) would be october. I am still thinking on buying a used blower with it but i am taking  in to consideration what fluffer and jill have said.

 

[JSchroeder]

http://www.daveramsey.com/

 

[pigguy]

if your heifer makes enoguh money you should be able to pay for your blower with the loan

 

[rob11woods]

I personally think that that is a very good idea, but i think that it would be better if these loans come from the government. they are practically capable of providing loans with much lower interests.

 

[oldwood]

My daughter got an fsa loan last year, interest rate is 2.8 %, payment is 799.00/per year for7 years total. BUT they specified she could not go buy just one show heifer that was here anyway, she bought five bred reg angus heifers. the program is designed to give the youth a start in agriculture. she had five calves last year paid her note and put money in the bank. so i believe it is a great program for the kids.

 

[WBar Farms]

http://www.daveramsey.com/

Bingo!

 

[ADG]

The FSA loan is a great opportunity for youth,  as with any loan, you have to have COLLATERAL.  My son was 10 when he took his first one out, we scared the living daylights out of him when we told him that if he did not have the money to pay it back, the nice lady would come and take away all of his equipment and heifers he listed as assets.   There is a lot of responsibility taking out a loan at a young age.  Be sure you have it thought out carefully, you have to report how you spent every bit of that money.

The interest rates right now are awesome, good luck with your project.