CHENANGO COUNTY – Start-up and small family-run farms in the county may be eligible to reap the benefits of recent changes to the USDA’s microloan program outlined in the 2014 Federal Farm Bill.
The United States Department of Agriculture (USDA) this week announced that it’s expanding eligibility and increasing lending limits to be more readily available to beginning and family farmers. The initiative allows for an increase in the borrowing limit for the agency’s microloan program from $35,000 to $50,000.
According to the USDA, the lending process for the program will also be simplified by broadening the definition of “farming experience” and expanding eligibility to meet the needs of family-run farms.
This may be good news to Chenango County, where start-up farms are on the rise for the first time in nearly a decade, according to Ken Smith, Executive Director of the Cornell Cooperative Extension of Chenango County.
“Right now, I think the trends are positive for the kinds of farming we do in Chenango County which is all mainly grass based farming,” Smith said. “Dairy is doing well and beef is doing well. Those are our biggest truly ag industries in the county.”
Smith said the number of small farms in the county has slightly increased over the last two years, despite a 9 percent decline from 908 farms in 2007 to 828 farms in 2012, according to data from the 2012 USDA Census of Agriculture. More than a dozen new farms have been established in the county over the last couple years, he said, brining the current number of farms in the county to approximately 800.
“We are finally seeing small farms rebound in the county,” Smith added, citing a growing international demand for dairy products as a reason. He also credited weather conditions in other dairy producing states for driving the dairy industry here at home. “As it gets dryer in places like California, Texas, and New Mexico, it pushes what we can do in agriculture here in New York State.”
The USDA says the recent changes to its microloan program will allow beginning and small to mid-sized farms to access an additional $15,000 with up to seven years to repay.
The agency is also looking for public input on broadening its scope of “farming experience.” Individuals who own farmland under a different legal entity operating the farm now may be eligible for loans administered by USDA’s Farm Service Agency. Producers will have an opportunity to share suggestions on the microloan process, and the definitions of farming experience and business structures during the public open comment period that runs now through Dec. 8.
The USDA has administered more than 165,000 loans totaling nearly $23 billion since 2010. Beginning farmers are the main beneficiary, having received more than 50 percent of USDA’s farm loans.
Said USDA Agriculture Deputy Secretary Krysta Harden in a press release, “USDA is continuing its commitment to new and existing family farmers and ranchers by expanding access to credit. These new flexibilities, created by the 2014 Farm Bill, will help more people who are considering farming and ranching, or who want to strengthen their existing family operation.”