New USDA program provides microloans to community farmers

Associated Press

MEMPHIS, Tenn.

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 past 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.

The loan can cover the costs of renting land, buying seed and equipment, and other expenses. One goal is to create more opportunities for entrepreneurship and employment in the farming industry, Vilsack said. Another goal is to provide beginners a chance to build credit, so they eventually can qualify for higher-value loans and expand.