Why FSA Loans are Benficial for Commodity Marketing Assistance

FSA loans can cover several different aspects of farming and agriculture including loans for commodity marketing assistance. When farmers need a bit of financial assistance in order to begin marketing their crops. Below is some information about the purpose of an FSA loan, its terms and how to qualify, and additional helpful information regarding FSA loans.


These types of loans help farmers to market their crops and bring them to the consumers. The end result is a more stable income for farmers which allows them to expand their business by hiring more workers and advertising to a larger audience. Additionally, the loan provides the farmer with interim financing, which prevents them from having to sell off their crops during a time period when prices are low for that particular product.

General Qualifications

FSA loans have certain requirements that must be met before they can be granted, which include:

  • The individual seeking the loan be a rancher or farmer producing agricultural items.
  • The individual must have a significant amount interest in the commodity.
  • The individual must complete the application process and submit all necessary paperwork.

FSA Loan Terms

For this particular FSA loan program, standard terms for repayment of the loan is 10 months and the payment schedule consists of a single payment. There is no early repayment penalty involved in the program. Other terms may apply as well and you should contact the program manager of Marketing Assistance Loans and Loan Deficiency Payments of the Farm Service Agency for more detailed information on the program and to obtain applications. Interest rates on these types of FSA loans will vary from time to time and will be dependent upon other factors as well.

Other Helpful Information

These FSA loans are considered to be non-recourse loans because the collateral offered to secure the loan are the commodities themselves. The producers have the option of delivering the collateral as repayment of the loan. From there, a settlement value will be determined and the value will then be credited to the principal and interest of the outstanding loan amount. The FSA loans can be applied for online at participating websites or you apply in person as well.