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Conservation Loan Program

Program Details:

Basic Eligibility Rules
This program provides guaranteed loans to promote conservation practices on farms and ranches to help protect natural resources throughout the United States.


Land tenure and property right rules

Participants must have NRCS-approved conservation plans and be current on loans to all creditors


Practices covered

FSA Conservation Loans are for implementing conservation practices, such as:

Installing conservation structures;

Establishing forest cover;

Installing water conservation measures;

Establishing or improving permanent pastures;

Transitioning to organic production;

Managing manure, including manure digestion systems; and

Adapting other emerging or existing conservation practices, techniques or technologies.


Cost share requirements

N/A


Other cost information

Priority is given to qualified beginning or socially disadvantaged farmers and ranchers, and loans are guaranteed on up to 90 percent for such producers.  Interest rates are negotiated between the borrower and the lending institution.


Individual funding caps or income restrictions

FSA guaranteed loan amounts up to $1.75 million available to farmers and ranchers as of the 2018 farm bill, adjusted annually for inflation.  The borrower does not have to be a family-sized farm, does not have to demonstrate an inability to secure credit from private sources at reasonable terms, and does not have to apply for commercial credit during the term of the loan should it become available at reasonable terms.


Other Restrictions or Requirements

Applicants with a debt-to-asset ratio of 40 percent or less, a minimum FICO score of 700, and have a net worth of at least three times the loan amount are eligible to apply through a streamlined application process with reduced paperwork.  There are no application deadlines.


length of contracts

Terms vary depending on the life of the security offered, but may not exceed 30 years


program established

Established as part of the 2008 farm bill.

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