FSA Lending

Posted on June 3, 2011. Filed under: Chuck Rabitz |

There’s an old cliché that farmers are asset rich and cash poor. Denmark State Bank understands the needs of our agricultural community and is proud to participate with FSA. FSA stands for Farm Service Agency and it offers benefits to both farm customers and lending institutions in a variety of programs.  These programs allow the greatest flexibility for agriculture customers by offering lower monthly payments, rates and provide a guarantee on a portion of the total loan, which in turn reduces risk to a lending institution. 

FSA programs are ideal for farmers looking to expand their farm operation, or existing debt. One of the most popular FSA programs for young farmers is the Beginning Farmer program. This program is utilized by farmers looking to purchase their first farm. A lender finances 50% with a 95% guarantee and 30 year terms, FSA finances 45% with 20 year terms and the beginning farmer needs a 5% cash down payment. This program allows young farmers the opportunity to get into farming without the large cash requirement many financial institutions would otherwise require. 

Denmark State Bank is proud to participate with FSA and partners with many of their programs and services. We can help both existing customers and new customers meet their financial needs.

 

 

Equal Housing Lender

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