microloans

This post is part of a Microloan Success feature series on the USDA blog.  Check back every Tuesday and Thursday as we showcase stories and news from USDA’s Farm Service Agency.

Beginning farmer Andy Getting was doing some research on the Internet when he came across information on USDA’s Microloan program.  The program allows beginning, small and mid-sized farmers to access up to $35,000 in loans using a simplified application process, and with up to seven years to repay.

Getting, an Iowa farmer, grows irrigated corn, soybeans and strawberries. He is a part-owner with his parents, Don and Mary Getting, who are starting their 30^th farming season.

The Gettings started growing strawberries in 1983 on one acre. Next year, they will pick 17 acres of June-bearing strawberries. Their customers have the option of picking their own berries or they can buy pre-picked berries at the market, which also sells fresh strawberry shakes, muffins, bread and many other strawberry-flavored baked goods made by Getting’s grandmother. During the summer months, the market employs 15 to 30 people.

This post is part of a Microloan Success feature series on the USDA blog.  Check back every Tuesday and Thursday as we showcase stories and news from USDA’s Farm Service Agency.

When Agriculture Secretary Tom Vilsack hosted a town hall meeting in San Antonio, Texas, in January 2013, he shared information about USDA’s microloan program.  The program allows beginning, small and mid-sized farmers to access up to $35,000 in loans using a simplified application process.

Beginning farmers Brittany Davis and Anthony Micheli were in the audience and they were listening.  The two were inspired to meet with their local Farm Service Agency (FSA) representatives to apply for a microloan.

Earlier today, Secretary Vilsack published an op-ed in Indian Country Today discussing USDA’s efforts to improve access to capital for Tribal citizens. You can read the original op-ed here.

Last week, I spoke to several hundred tribal leaders at the National Congress of American Indians Tribal Nations Legislative Summit here in Washington, DC. The conversation was wide ranging, but boiled down to two key topics: what have we achieved, and how can USDA programs better support sustained economic growth in Indian Country?

USDA and our partners in Indian Country have made significant improvements to critical infrastructure over the past five years. In the past year alone, USDA invested more than $625 million in Indian Country through our Rural Development programs. We have worked with Tribes to bring new and improved electric infrastructure to Tribal lands and financed Tribal community facilities, including schools, medical facilities and Tribal colleges and universities.

The recent Census of Agriculture shows that there is tremendous potential for growth among the smaller producers that make up the middle of American agriculture, but they need our support to get there.

That can mean a lot of different things. Some small and mid-sized farms and ranches are happy just the way they are, and simply need stability to help them keep afloat during tough times. Others want to grow and expand, but don’t know how to access support that meets their specific needs.

Recognizing these challenges, we have launched a new package of education, credit, technical assistance, and marketing tools and resources geared specifically to small and mid-sized farmers and ranchers.

This week, President Obama released USDA’s fiscal year 2015 budget proposal, which supports our ongoing work to create jobs and opportunity in rural America.

The budget builds on the new opportunities available to us through the recently-passed 2014 Farm Bill to achieve reform and results for the American taxpayer; foster opportunity for the men and women living, working and raising families in rural America; and support innovation through strategic, future-focused investments.

My team at USDA has been hard at work identifying everything that will be required—regulations, guidance and other activities—to develop a plan to implement the new Farm Bill.

“We are excited by the challenges you presented to us,” said FFA National Secretary Mitch Bayer at the conclusion of a half-hour meeting of National FFA officers with Agriculture Secretary Tom Vilsack at the USDA Whitten Building earlier this week.

In his meeting with the officers, the Secretary covered a wide range of issues, including the immediate need for a new Food, Farm and Jobs Bill.  When it passes, he said, the National FFA should study provisions that will help young, beginning farmers become established.  He said there will be, he hopes, an easier path to credit and also support for the USDA microloan program, which helps beginning farmers and others buy equipment, rent ground, and buy livestock or supplies at affordable interest rates. The Secretary noted that 70 percent of the world’s farmers are women, and USDA is working to provide greater opportunities to women, Native Americans, Hispanics, African Americans and others who want to farm.

As an organic farmer, I know how frustrating it can be to search the internet for information that might help my operation. It might be there somewhere but finding it takes precious time, especially if I don’t know exactly what I’m looking for.  Now, USDA has solved part of that problem with a centralized web resource center on USDA.gov for all the programs, services, and data we have that support organic agriculture.  Not only is this web resource center a “one-stop shop” for information about organics at USDA, but there is lots in store!

Organic operations (and those considering transitioning to organic) can:

Rural America faces tremendous uncertainty today. Congress has not yet passed a Food, Farm and Jobs Bill, and the current extension of 2008 Farm Bill programs will soon expire. Additionally, thus far, no budget has been provided by Congress to continue funding the Federal government past September 30.

Amid this uncertainty, USDA remains focused on our mission and on our work to revitalize the rural economy.  We have delivered record investments under President Obama’s leadership, and we will continue working to do so.   In a time of reduced resources, we’ve also taken a wide range of new, collaborative approaches with other government agencies—complementing our public-private partnerships and creating better collaboration among state and local partners.

The 8th Annual Governor’s Native American Summit was held last week at Utah Valley University in Salt Lake City, Utah.  Utah’s Rural Development State Director Wilson “David” Conine wanted to share with attendees the importance a community development financial institution (CDFI) can play in tribal development.  He turned to his counterpart, South Dakota Rural Development State Director Elsie M. Meeks who has over 20 years of experience working for Native community economic development.

Meeks recognized CDFI as an important part of the infrastructure for delivering consistent funding for housing and small business development activities that benefit low and moderate income people.  They combine multiple sources of public and private capital in order to make loans and investments available in ways tailored to the particular underserved geographies and types of businesses or borrowers.  Developing capacity among these types of organizations can increase utilization of USDA programs in a region, many of which provide long-term below-market capital for permanent improvements in rural areas.

Shane Kerner applied for her first USDA Farm Service Agency Rural Youth Loan at age 14. Now, at age 20, she not only reached adulthood, but financial independence to grow what was once a 4-H project into a thriving cattle operation.

“I never thought I would get as far as I am today with my cattle,” said Shane. “It is truly a privilege to have the opportunity to start at a young age and see the growth of your animals from seed stock to a small commercial herd, right outside your door.”

Shane refers to her operation as a passion for finding the highest genetics for breeding Angus cattle. With the proceeds from the sale of seven grass-fed calves she purchased with the youth loan, she bought more cattle, including her best show heifer. This started the foundation for growing a registered Angus herd.