USDA loan program to boost small farms
BY AP Wire Service
Wednesday, January 16, 2013
1/16/13 at 3:28 AM
MEMPHIS, Tenn. (AP) - With interest in locally grown food soaring, the federal government said Tuesday it has created a small loan program to help community farmers who might not be able to borrow money from banks.
Call it seed money.
The low-interest "microloans" of up to $35,000 are designed to aid startup costs, bolster existing family-run farms and help minority growers and military veterans who want to farm. Over the last three years, there has been a 60 percent increase in local growers who sell directly to consumers or farmers markets, Agriculture Department Secretary Tom Vilsack said.
Kay Jensen, an organic farmer who grows broccoli, strawberries and tomatoes in Sun Prairie, Wis., saw two immediate benefits from the program - paperwork would go from about 30 pages to seven, and it would be easier to borrow a manageable sum. She said she might consider a loan for $3,000 to $10,000 to expand her irrigation systems.