WARREN – Farm ownership may be closer for some people after the recent announcement that loan limits have been raised for farm ownership.

The U.S. Department of Agriculture’s Farm Service Agency said limits that were at $200,000 have been increased to $300,000 for farm ownership and operating loans, the first increase in 24 years.

“FSA is working with farmers at the local level and has already started making loans with this higher limit,” FSA’s Farm Loan Chief Deborah Dufour said. “FSA strives to be the lender of first opportunity and is proud to help the hardworking Americans in Maine who were struggling with the high costs of running a family farm, especially beginning and socially disadvantaged producers.”

Dufour explained that direct loans are a resource for farmers to obtain the credit they need to build and sustain family farms. Despite continual increases in farm input costs, FSA loan limits had remained unchanged since 1984.

“The increased loan limits are expected to help farmers whose credit requirements could not previously be met by the FSA loan limits. In addition, some existing FSA borrowers who have already reached the previous limit of $200,000 will now be eligible to obtain additional credit from FSA,” Dufour said.

Direct farm loans are made by FSA with Government funds. FSA also services these loans and provides direct loan borrowers with supervision and business planning so they have a better chance for success. Farm ownership, operating, emergency and youth loans are the main types of loans available under the direct program. Direct loan funds also are set aside each year for loans to socially disadvantaged and beginning farmers.

Farmers interested in applying for a direct operating or farm ownership loan should contact their local FSA office.