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Farmers eligible for new fed loan guarantees

Farmers eligible for new fed loan guarantees

January 26th, 2012 in News

JEFFERSON CITY (AP) - More loans may be available to first-time farmers in Missouri, under a new agreement between the state treasurer's office and the U.S. Department of Agriculture.

Treasurer Clint Zweifel says first-time farmers qualifying for loans under the state's low-interest Linked Deposit Program could receive a 95 percent loan guarantee from the federal Farm Service Agency. Zweifel said that guarantee could save money on interest.

The federal agency might also waive loan origination fees, depending on how much money is available for the program. Farmers can use the money for land, buildings, new and used farm equipment and livestock.

Under the program, the state deposits money in banks at low interest rates. The banks then use that money to provide low-interest loans to small business and farmers.