The U.S. Department of Agriculture has announced a new microloan program to help farmers.
The program is designed to help small and family operations, beginning and socially disadvantaged farmers obtain loans below $35,000, according to a news release.
The new microloan program is aimed at bolstering the progress of producers through their start-up years by providing needed resources and helping to increase equity so that farmers may eventually graduate to commercial credit and expand their operations, the release stated.
Sometimes small and beginning farmers have to use credit cards or personal loans with high interest rates to finance their start-up operations, Agriculture Secretary Tom Vilsack said in the release.
USDA farm loans can be used to purchase land, livestock, equipment, feed, seed, and supplies, or to construct buildings or make farm improvements
The loans will be administered through the USDAs Farm Service Agency operating loan program.