Plowpoint: Loans and subsidies

gabbyraja · #1 07/08/12, 11:40 AM

You've mentioned in another thread that you are eligible for low-interest loans and subsidies because you added sheep to you farm. I no way do I expect that my tiny "farm" in my backyard would qualify as a farm, but perhaps I might buy the 40 acres across the street someday, and, well, I was interested in your info. Would you mind posting the sources of these loans and subsidies, maybe links or further info on them and requirements, etc?

Thanks

PaulNKS · #2 07/08/12, 12:44 PM

Anyone getting into farming (not just sheep) can, or may, qualify for these same loans and various programs. Just contact your county's Farm Service Agency (USDA). They coordinate the majority of programs including loans for farms as startup costs to help get people (especially young people) back to farming.

sammyd · #3 07/08/12, 05:50 PM

FSA - Farm Loan Programs

springvalley · #4 07/08/12, 06:00 PM

Just get ready to jump threw the hoops if you do. > Marc

edcopp · #5 07/08/12, 06:46 PM

It seems to me that it might not be such a good idea to borrow money from an entity that has no money.

fantasymaker · #6 07/08/12, 07:09 PM

Cant think of any reason your present place wouldnt qualifiy for some things. I know guy with 5 shhep and 5 behives thats always talking about his check from the gobbermint..

gabbyraja · #7 07/08/12, 07:43 PM

Quote:

Originally Posted by fantasymaker

Cant think of any reason your present place wouldnt qualifiy for some things. I know guy with 5 shhep and 5 behives thats always talking about his check from the gobbermint..

Wanna ask him how he gets that check, for me?

rancher1913 · #8 07/08/12, 08:21 PM

the more disadvantaged you are (read any color except white, or any sex except male) the more you can get.

countryfied2011 · #9 07/08/12, 08:46 PM

DH put up farm fence for a man that got one of those loans, don't know the details of the loan itself, but I do know they were very specific about how to put up the fence. DH had pages of rules and reg which include the gauge of the wire to the type of post and how high etc. Even included drawings of how the Gov wanted the fence. I guess if they are paying for it, they can dictate what, where and how it should be done.

gabbyraja · #10 07/09/12, 07:02 AM

Just so happens I am non-male and dh is non-white. And despite us living a very frugal lifestyle within our means, because we have 5 children we are considered by the government to be impoverished. So, we qualify for everything. We are very interested in grants (who doesn't prefer free money and remaining debt-free?), but low interest loans aren't terrible either. So, lay them on me! What's out there?

PaulNKS · #11 07/09/12, 08:15 AM

Quote:

Originally Posted by gabbyraja

Just so happens I am non-male and dh is non-white. And despite us living a very frugal lifestyle within our means, because we have 5 children we are considered by the government to be impoverished. So, we qualify for everything. We are very interested in grants (who doesn't prefer free money and remaining debt-free?), but low interest loans aren't terrible either. So, lay them on me! What's out there?

You won't find grants from the government. A lot of people think there are a lot of grants, but it is not true. They have subsidies, cost-sharing, and loans.

The government won't outright pay for things. For example, if you participate (apply and get accepted) for EQITY, you can have pastures revitalized, cross fences built, pond dams repaired, brush removed, etc... How it works: you apply, and if you are approved, you sign a contract for the work to be performed within a set time frame. They set the time frame. Not you. You pay out the costs for the project and when you have completed it, you notify the FSA office, they inspect it, and direct deposit the money in your account.

The rates vary. Even rates per acre for brush management can vary on one farm. We averaged $214 per acre on one of our farms. It's 160 acres. They set us up on a 3 year plan with details of what has to be done for each of the three years. You CANNOT go longer, but you can finish sooner. We pay the costs, and then they reimbursed for the contracted amount.

There are several programs like that. Then you also have subsidies for crops, and loans for certain purchases and operations.

But, there are no programs where the government just hands out money for farms, per se.

Plowpoint · #12 07/09/12, 08:15 AM

Quote:

Originally Posted by rancher1913

the more disadvantaged you are (read any color except white, or any sex except male) the more you can get.

That is just plain NOT true.

Not everyone qualifies for the low interest rate loans, or the grants, BUT the decision ultimately resides within the Conservationist because they have a lot of latitude in which to operate.

Also the local Soil and Water Conservation District board has a lot to do with who qualifies which is a great thing, because S&WCD's are all open to the public, required to get public input and are the ONLY oversight committee of the Government. The problem is, no public people show up. In our county, last year we had 5 state employees and 2 federal employees show up, with me being the only "public" person there, and even then I was a Supervisor for the Soil and Water Conservation District.

The last part of your statement is the MOST BLATANT disregard for the truth because while in ever other sector of government, gender comes into play, it is NOT done for the USDA. No decision is based on Gender because they know every farmer out there would make his wife the CEO of the LLC Farm if they could. I agree with this, but it is sad that my neighbor up the road has a construction business in his girlfriend's name and because of it, gets governmental contracts to rebuild Maine roads, but a dairy farm that works 365 days a year, 7 days a week, 24 hours per day cannot.

I am not upset at you, just dislike false statements when the system is actually pretty fair. I can only speak for my county, but we have really tried to "spread the love" and give to both small farmers, start up farmers and big farmers alike. We need them all. With no start up farms, agriculture in our county dies. Without small farms, we become dependent on one type of livestock and we have done that in the past and it was a colossal failure. Yet we need the sheer volume, economics of scale, and equipment of large farms to feed our community as well.

I am busy today and have a lot to do or would type more here.

gabbyraja · #13 07/09/12, 11:19 AM

Quote:

Originally Posted by Plowpoint

That is just plain NOT true.
while in ever other sector of government, gender comes into play, it is NOT done for the USDA. No decision is based on Gender

"The Agency targets a portion of its loan funds to minorities and women farmers and ranchers"
Minority and Women Farmers and Ranchers

rambler · #14 07/09/12, 11:37 AM

Grants - if you qualify gfor them, be concerned - you probably will fail at farming, as the outright grants go to entities that have little knowlede or hope of actually farming. Seriously. Be worried if you qualify for a grant, that is not good sign!

Cost-share - there are many good cost-share programs, and they often relate to a very small farm so would seem a perfect match. They often provide free planning and 50% of the cost of a pond, windbreak, fencing, etc. But as mentioned, they require very detailed and expensive ways of doing things, which often requres the job to cost 50% more than normal. So - looks good, but once you get involved, you need to do every nitpicking detail their way, it becomes mind-numbing and expensive.

Loans - they do have some good loan programs, low intrest. You will need to give more paperwork, and the approval process is much longer, many more hoops to jump through, but for many folk the loans are a good deal.

Non-white non-male folk can shake out some special programs that can be a lot of gravy, if you are into milking the system. Not so familar with that around 'here', but people were talking from other areas once, and it was kinda eye-openning. Then the conversation got shut down. Whatever.

--->Paul

texican · #15 07/09/12, 12:02 PM

If your a minority, and even think you might have been discriminated 20 or 30 years ago (regardless of whether you've ever farmed, or even know what a farm is) you should apply to the USDA... if you google "USDA Black farmer payout", or Pigford vs. Glickman, you'll find what you need.

Apparently decades ago, some Black farmers were denied loans for farming (I know quite a few non-Blacks that were denied also, but that just muddles up the narrative of discrimination), by the USDA. Decades later, lawsuits were filed for the original 15,000 claimants. Trouble is, the US Census said there were only 33K Black farmers existing at the time, and over 90K have made claims... also women, Hispanics, and other's seeing ripe low hanging fruit have made claims.

Regular loans through banks are embarrassingly low... if I had to do a loan, I'd rather go through the First State Bank, where I know the folks, and pay .1% more interest, than go through the USDA and have half a dozen bureaucrats poking their nose around my place every day, looking for make-work. Reckon if one likes prying eyes, it'd be 'worth it'.

goatlady · #16 07/09/12, 01:32 PM

Absolutely what texican just posted. If you truly do not mind government "inspectors" on your property inspecting anything and everything, and requiring paper documentation for every dime of govnt. $$ you seek or receive or spend, by all means join their programs. If you value your privacy and actually think you know what you are doing and how to do it, stay far away from such programs. To me the loss of privacy and freedom of choice is not worth the $$ they dole out as their conditions are met.

gabbyraja · #17 07/09/12, 02:55 PM

Ooh, didn't really think about their long-term involvement in my "business".

Michael W. Smith · #18 07/09/12, 03:04 PM

Yeah, it's a real nice benefit - help with paying for stuff. Of course, if you don't mind the government telling you what you can and can't do, and for a certain amount of time . . . . . . . . . . . . . . .

You can be rich and famous too, and have all of your dreams fulfilled - if you don't mind selling your soul to the devil too.

PaulNKS · #19 07/09/12, 03:27 PM

Just because you participate in some of the USDA programs does not mean you give up any freedom or that anyone is snooping around. They still have to have your permission, to enter your property.

We've never had loans with them, but our farms are in their programs. One program is the EQIP. All they did was come out once to evaluate the pastures for clearing and for brush management. Then when we were approved, we went in and signed the contracts agreeing to their plan. Basically, it was to clear most of 160 acres at an average of $214 per acre. There was about 20 acres that included spraying. The plan was divided into 3 segments. Each segment to be completed in year 2012, 2013, and 2014. But, if we want to do it all in 2012, we can.

The only other time they come out is when we call them that we've completed a phase of the plan. They come out to inspect and leave. There are no other requirements or contingencies.

However, if you get into some programs, they help you establish a plan for reseeding, grazing rates, etc, which is a good thing. It keeps you from overgrazing if they pay for most of the pasture revitalization, but only for a specified period of time.

As far as what they paid on EQIP, it was very very generous. It was much more than the actual costs of doing the work. Oh.. thank you. It was your tax dollars. lol

Not all the programs are bad. You have to know what you're doing. But, the money is there for cost-sharing to help.

By the way. The money they paid us on EQIP paid for the Case 75XT skid steer, a new tree saw, and a grapple bucket. I now use those to hire out a couple jobs per month. I can easily make $500 in one day clearing pastures. So, I only hire out one or two jobs per month to pay for diesel and upkeep on the machinery while I continue to use it for our own farm use. Call it using the system. If it's there and the requirements are not cumbersome, you bet I'll be in line for my part of your tax dollars. lol

But, you do not give up any freedoms and they are not constantly coming onto your land with spying eyes. That's pure conspiracy theorist's hamming it up.

InvalidID · #20 07/09/12, 03:29 PM

Not for nothing but sometimes it's much better to go with private loans. I make a few loans to locals that own some kind of livestock so they can afford to expand. They'll put up some young sheep or hogs etc. as collateral and I'll give em a bit above current value. They get some cash now and my collateral grows in value as they feed and tend the animals. Maybe there's someone in your area like this?