FSA Loans for Commodity Marketing Assistance

FSA loans allow farmers to acquire interim small business loans when harvest time arrives so they will have money to operate without being put into a situation where they will have to sell their commodities when they are facing a low market price.

FSA loans can be separated into two categories:

Marketing Assistance Loan (non-recourse)

A non-recourse agricultural loan means that the farmer places his commodity as loan collateral. When this happens the farmer has the option of paying the loan back in cash at maturity or delivering the collateral to the Commodity Credit Corporation where its value will be determined and applied towards the FSA loan.

Marketing Assistance Loan (recourse)

These FSA loans cannot be delivered to the Commodity Credit Corporation as repayment. This loan includes the repayment of principle plus interest. It must be paid directly towards the marketing assistance loan