Whether you’re buying land, purchasing equipment, or covering the costs of your initial planting season, transitioning into farming or ranching requires capital. Here are some resources to help veterans and beginning farmers start this journey.
Start with USDA FSA
The USDA Farm Service Agency (FSA) offers low-interest loans to help veterans and beginning farmers buy land, buy equipment, and launch their operations. FSA is a “lender of first opportunity” for farmers who may not qualify for regular bank credit. Their goal is to help you build a track record and move to commercial lenders over time. FSA provides loans on everything from buying a property to startup costs for planting. They also have an online Loan Assistance Tool that can tell you what you might qualify for, whether as a veteran, a beginning farmer or rancher, or an experienced grower. Check this out before you contact your local FSA office so you are prepared to ask and answer more specific questions.
USDA FSA has an office in each Hawaiian County. Follow the link above to find your local office and contact your local farm loan manager/officer.
USDA Farm Loans for Veterans and Beginning Farmers
The USDA Farm Service Agency (FSA) offers low-interest loans to help veterans and beginning farmers buy land, buy equipment, and establish their operations.
You qualify as a veteran farmer if you served in the Armed Forces and meet one of these conditions:
You have operated a farm for no more than 10 years.
You were discharged under conditions other than dishonorable within the last 10 years.
National Guard members qualify:
After 20 years of service, OR
After being deployed on active duty for at least 180 consecutive days.
Beginning farmers who aren’t veterans can also apply for assistance if they haven’t run a farm for more than 10 years.
Options at a Glance
Microloans: Up to $50,000 for operating costs and up to $50,000 for land, with a simpler application process. These are a good fit for small and new farms.
Direct Operating Loans: Up to $400,000 for equipment, livestock, and production costs. Most are repaid within 7 years.
Direct Farm Ownership Loans: Up to $600,000 to buy farmland, build or repair structures, or make conservation improvements. Repayment can stretch up to 40 years.
Down Payment Loans: A low-rate option that helps beginning and veteran farmers buy land.
Interest rates are set monthly and are competitive, so it’s worth checking current rates when you’re ready to apply.
Basic Eligibility Requirements
To apply for an FSA loan, you must:
Be a U.S. citizen, U.S. non-citizen national or qualified alien
Operate a family farm
Have a satisfactory credit history and be unable to get credit elsewhere at reasonable terms
Not be delinquent on any federal debt
Other Resources
UH CTAHR’s Go Farm Hawaii
Agriculture Stewardship Hawaiʻi
USDA Value Added Producer Grants
HIP Agriculture Farmer Training