Loans for Beginning Farmers and Ranchers

The U.S. Department of Agriculture’s (USDA) Farm Service Agency (FSA) makes and guarantees loans to beginning farmers who are unable to obtain financing from commercial lenders. Each fiscal year, the Agency targets a portion of its direct and guaranteed farm ownership (FO) and operating loan (OL) funds to beginning farmers.

A beginning farmer is an individual or entity who (1) has not operated a farm for more than 10 years; (2) meets the loan eligibility requirements of the program to which he/she is applying;

(3) substantially participates in the operation; and,
(4) for FO purposes, does not own a farm greater than 30 percent of the median size farm in the county. (Note: all applicants for direct FO loans must have participated in the business operation of a farm for at least 3 years.) If the applicant is an entity, all members must be related by blood or marriage, and all members in a corporation must be eligible beginning farmers.

Maximum Loan Amounts
■ Direct FO or OL: $300,000
■ Guaranteed FO or OL: $1,119,000 (Amount varies annually based on inflation).

Downpayment ProgramFSA has a special loan program to assist socially disadvantaged and beginning farmers in purchasing a farm. Retiring farmers may use this program to transfer their land to future generations.

To qualify:
■ The applicant must make a cash down payment of at least 5 percent of the purchase price.
■ The maximum loan amount does not exceed 45 percent of the least of (a) the purchase price of the farm or ranch to be acquired; (b) the appraised value of the farm or ranch to be acquired; or (c) $500,000 (Note: This results in a maximum loan amount of $225,000).
■ The term of the loan is 20 years. The interest rate is 4 percent below the direct FO rate, but not lower than 1.5 percent.
■ The remaining balance may be obtained from a commercial lender or private party. FSA can provide up to a 95 percent guarantee if financing is obtained from a commercial lender. Participating lenders do not have to pay a guarantee fee.
■ Financing from participating lenders must have an amortization period of at least 30 years and cannot have a balloon payment due within the first 20 years of the loan.

Sale of Inventory Farmland
FSA advertises inventory property within 15 days of acquisition. Eligible SDA and beginning farmers are given first priority to purchase these properties at the appraised market value. If one or more eligible SDA or beginning farmer offers to purchase the same property in the first 135 days, the buyer is chosen randomly.

Joint Financing Arrangement
Beginning farmers may choose to participate in a joint financing arrangement.  With this arrangement, FSA lends up to 50 percent of the amount financed, and another lender provides 50 percent or more. The interest rates can be obtained from your local FSA office and the term of the loan will not exceed 40 years or the useful life of the security.

Where to Apply
Applications for direct loan assistance may be submitted to the local FSA office serving the area where the operation is located. Local FSA offices are listed in the telephone directory under U.S. Government, Department of Agriculture or Farm Service Agency. For guaranteed loans, applicants must apply to a commercial lender who participates in the Guaranteed Loan Program. Contact your local FSA office for a list of participating lenders.

For More Information
Further information about this and other FSA programs is available from local FSA offices or on the FSA website.

Ozarks Sustainability Festival

The South Central Ozarks’ First & Largest Celebration of Sustainable Living!

Date: Sunday, May 15th, 2011 – Rain or Shine!

Time: 10:00 am - 6:00 pm; Cost: Free

Location: Next Step SDA Church, 3555 North US Hwy 63, West Plains, MO

Directions: 4 miles north of West Plains or 13 miles south of Willow Springs on US Hwy. 63 North, near Richards R-5 School

Description: A totally free fun-filled day of learning for the entire family at the 4th Annual Ozarks Sustainability Festival, featuring free presentations and workshops throughout the day! You can expect demonstrations of sustainable products and skills, local vendors of green goods and services, handmade local arts and crafts, and select bedding and garden plants. Linger at our scrumptious food court and then enjoy the variety of educational booths, live farm animals, just-for-kids activities and family entertainment. For more information please visit our website or call Craig Wiles at 417-818-6057. We welcome inquiries from interested vendors, speakers, demonstrators and educational organizations!

Early Spring Grazing Tips: Manage Height, Cut Early

A frequently asked question in late May-early June is, “how come my pastures look so spotty grazed?”

The answer is fairly simple, but hard to do much about for that grazing season, according to Eldon Cole, a livestock specialist with University of Missouri Extension.

“An evenly-grazed pasture in early summer usually results from optimal grazing pressure early in the spring. Get on the pastures early with enough cattle to graze it off like you would with a mower,” said Cole.

According to Cole, don’t leave the cattle on very long and plan on returning for several grazing bouts. When grass is growing fast, the rest period can be only 10 to 14 days.

“This type of grazing management reduces your chances of having that ragged, spot-grazed pasture later this year,” said Cole.

If a producer’s cattle population is too small to graze the pastures down to a three inch height, use power fencing to force the cattle to achieve that grazing height.

Keeping the grass, usually fescue, short early in the season also aids in new legume seedling establishment that may be in the mix. Pastures that get away and grow too tall should be cut for hay early in May.

“A May cutting makes excellent hay and sets the pasture up for hay cutting in July or it can be worked into the grazing rotation the rest of the year,” said Cole.

A three-day grazing school goes into more detail on grazing management. Grazing schools are being offered during 2011 on different start dates at different southwest Missouri locations: Halfway (April 26), Mt. Vernon (May 24), Neosho (June 14), Marshfield (Sept. 13), Forsyth (Sept. 19) and Bois D’Arc (Oct. 18).

Information about other schools around the state is available on the Missouri Forage and Grassland Council website.

Attendance is generally limited to 25-30 people. Cost of the schools varies by location, and includes all of the materials (grazing manuals, guides, grazing stick). Daytime schools usually include meals and breaks and some include transportation.

Schools are conducted and sponsored by USDA - Natural Resources Conservation Service, University of Missouri Extension and Area Soil and Water Conservation Districts.

Sheep and Goat Conference May 1

Interest is expected to be high for the Southwest Missouri Sheep and Goat Conference planned for 9 a.m. to 3 p.m., May 1, at the McDonald County Fairgrounds, (located between the McDonald County High School and Middle School) in Anderson, Mo.

Goats have been the fastest-growing livestock enterprise in the United States in recent years according to Dr. Jodie Pennington, small ruminant educator with Lincoln University Extension.

"If you want to raise goats for meat or milk, you can learn how to raise them at this conference," said Pennington. “Participants will learn the basic information needed to work with goats.”

Topics like how to get started with goats, goat diseases, internal parasite control, goat nutrition including pasture and forage management and kidding management will all be addressed.

This conference will also include information about the current sheep industry in Missouri.

Speakers include nationally known goat nutritionist Dr. Steve Hart, from Langston University in Langston, Okla. Hart will discuss fencing to contain goats and to control predators as well as grazing goats with cattle.

Other speakers include Dr. Helen Swartz and Dr. Charlotte Clifford-Rathert from Lincoln University Extension in Jefferson City. Swartz is a sheep and goat specialist who has worked with small ruminants for over 30 years. Clifford-Rathert is a small ruminant veterinarian who routinely works with goat diseases and internal parasites.

Pennington will talk about factors in getting started with goats. John Hobbs, an agronomy specialist with MU Extension, will moderate the meeting and conduct an information exchange.

For those who pre-register before April 23, the cost is $10 person. Registration is $15 at the door the day of the event.

For more information, call the Newton County Extension Center, 601 Laclede, Smith Hall (Crowder College), Neosho, MO 64850 at 417-455-9500 or email simkinsv@missouri.edu.

Cover Crops: Managing Healthy Soils Workshop

Learn about the dynamic soil environment and how cover crops can improve soil health. Then tour fields at Bradford Farm and Jefferson Farm & Gardens where cover crops are incorporated into planting rotations for field crops and vegetables.

When: Thursday, May 12, 2011, 8:30 a.m. to 1:00 p.m.

Where: Bradford Research and Extension Center, 4968 Rangeline Road, Columbia, MO 65201

Speakers and topics:
Robert Kremer - Soil microbiology

Clark Gantzer - Soil/water conservation

James Quinn - Cover crop use in vegetable rotations

Tim Reinbott - Cover crop use in field crop rotations

This event is free for everyone to attend rain or shine. Snacks will be served.

Please R.S.V.P. by May 5 2011, by e-mailing Catherine Bohnert or call 573-449-3518.

Directions: From I-70 take Highway 63 south, take Broadway WW exit, turn left (east) on Broadway for 6.5 mi, turn right on Rangeline Rd for 2 mi, Bradford Farm is on the right

Crop Rotation Critical for Successful Vegetable Production

Vegetable crop rotation is important for a healthy, productive garden, says a University of Missouri Extension horticulture specialist.
Growing a different types of vegetables in the same plot from year to year has many benefits, said Lala Kumar. It avoids the buildup of diseases and pests that can take place when the same or similar crops are planted in the same soil year after year.

“It also promotes good soil health by alternating crops with different nutrient needs, therefore avoiding depletion of any one necessary element present in the soil,” Kumar said.

Crop rotation can also benefit overall soil structure by alternating deep- and shallow-rooting plants, breaking up subsoil and reducing the effects of soil compaction.

A common approach is to rotate crops by botanical families so that individual vegetables from the same family do not follow each other in the rotation. The reason for this is that each family of vegetables has unique effects on growing conditions. “For instance, most vegetables within a given family usually fall prey to the same diseases and insects,” he said.

That makes it important to know the major vegetable families.

The legume family has an important role in crop rotation. Legumes, which include peas and beans of all kinds, are described as “nitrogen fixing” plants. “Legumes collect nitrogen from the air and fix it on the root systems in the form of nodules through a symbiotic relationship with bacteria known as rhizobia,” Kumar said. “Legumes are a great crop to alternate with heavier-feeding plants such as sweet corn and tomatoes.”

Other families common to farms and gardens:
- The goosefoot family includes beets, chard and spinach.
- The mustard family has many members—cabbage, collards, Brussels sprouts, kale, cauliflower, broccoli, kohlrabi, turnip, horseradish and radish.
- The parsley family includes carrot, parsley, celery and parsnip.
- The nightshade family encompasses potato, tomato, eggplant and pepper.
- The gourd family claims the vine crops—summer squash, winter squash, pumpkin, watermelon, cantaloupe and cucumber.
- The composite family includes lettuce, artichoke and Jerusalem artichoke.
- The lily family includes onion, garlic, leek and chives.
- Sweet corn is a member of the grass family.
- Last, but not least, is okra, which is claimed by the mallow family.

“A rotation is easy to plan and use,” Kumar said. First, draw a large circle on paper. Divide the circle into sections as you would cut a pie. The number of sections you have should be equal to the number of vegetable families that you intend to plant.

A simple example would be a garden with four vegetable families: 1) sweet corn (grass family), followed by 2) black-eyed peas and snap beans (pea family), followed by 3) cabbage, broccoli and radishes (mustard family), followed by 4) tomato, pepper and potato (nightshade family).

"To determine what family will occupy the four plots next year, simply rotate the plan clockwise one section,” he said. “Next year the black-eyed peas will be planted where the corn grew this year, and so on. Other more complicated examples can be worked out using the same procedure.”

To make the most of crop rotation, farmers or growers need detailed records of where crops were grown in the past as well as a written plan for how crops will be arranged in the future. Start by making a map of your farm or garden. Label the fields, subfields or plots with names and acreage. Keep a record of crop performance, including any serious pest or soil problems in a field.

NRCS Assistance Supports Organic Growers

Missouri's organic farmers and those transitioning to organic production have until May 20 to apply for the next round of financial assistance available through the Natural Resources Conservation Service, State Conservationist J.R. Flores said.

Flores said about $1.3 million is available through NRCS' Environmental Quality Incentives Program (EQIP). That is Missouri's share of a $50 million nationwide initiative. Eligible producers include those certified through USDA's National Organic Program, those transitioning to certified organic production, and those who meet organic standards but are exempt from certification because their gross annual organic sales are less than $5,000.

EQIP promotes agricultural production and environmental quality. Through EQIP, farmers and ranchers receive financial and technical assistance to help install structural conservation practices and to implement management systems that promote conservation.

Flores said conservation practices could include planting cover crops, establishing integrated pest management plans, constructing seasonal high tunnels, or implementing nutrient management systems consistent with organic certification standards.

Under EQIP Organic Initiative contracts, NRCS provides financial payments and technical assistance to help producers implement conservation measures in keeping with organic production. Beginning, limited resource, and socially disadvantaged producers may obtain additional assistance. The 2008 Farm Bill limits EQIP payments for organic operations to $20,000 per year per person or legal entity, with a maximum total of $80,000 over six years.

To apply for EQIP or to get more information about EQIP and other NRCS programs, contact the NRCS office serving your county. Look in the phone book under "U.S. Government, Department of Agriculture," or access this website. You can also get information about NRCS programs online.