SPRINGFIELD — Scherrie V. Giamanco, state executive director for USDA’s Illinois Farm Service Agency (FSA), announced Wednesday that funds are now available for Guaranteed Conservation Loans. Conservation loans allow farmers and ranchers to implement conservation practices on their land that will help protect natural resources.
“Guaranteed Conservation Loans are a useful alternative to help operators implement any Natural Resources Conservation Service (NRCS) approved conservation practice including, but not limited to, waste management systems, conservation structures or water conservation measures,” said Giamanco.
Unlike other FSA guaranteed loan programs, conservation loans are not limited to family size farms. Operators who may not normally qualify for an FSA guaranteed farm operating or ownership loan could be eligible for a Guaranteed Conservation Loan.
According to Giamanco, the Guaranteed Conservation Loan limit is $1,302,000, and interest rates and terms will vary. The maximum guarantee FSA can issue is 75 percent. A streamlined application process is available for applicants with a strong financial position. The streamlined process reduces paperwork requirements and eliminates the requirement to provide a cash flow statement and supplementary documentation. Interested applicants who do not already have a conservation plan approved by NRCS should work with their local NRCS staff to develop a conservation plan. As with other guarantees, lenders can reduce risk, increase liquidity and offer lower rates by selling the guaranteed portion in the secondary market.
For questions, contact your lender or local FSA .