Direct Operating FSA Loans

Direct Operating Loan (OL) is one of the FSA loans offered to eligible farmers and ranchers who are denied funds from commercial lenders, banks, or credit unions.

Scope of the Agricultural Loans
OL is not for all business owners in the agriculture industry. It is only made available for small family farmers and ranchers, particulary to families who just started their business in farming or socially disadvantaged farmers/ranchers. Through this FSA loan, beginners are granted an operating capital which they can use in producing crops or livestock.

Benefits of the Loan Program
A borrower can use the OL proceeds to purchase agricultural equipment and supplies such as feeds, seeds, chemicals, and fertilizers. If a farmer wishes to expand his crop production, he can use the money to buy land. Other operating expenses like farm improvements, water development, building construction, and livestock production are also funded by the loan.

Amount of Loan
The average amount granted to a borrower from the direct Operating Loan is $53,000. However, a farmer can borrow up to a maximum amount of $300,000.