Credit Programs

The Title 5 programs consist of ConAct, the statue that authorizes USDA credit and rural development programs, as well as a few 'last resort' loan programs for those who cannot guarantee monies from other lenders.

Consolidated Farm and Rural Development Act (ConAct)

Purpose: Three types of loans are available via ConAct: farm ownership, farm operating, and emergency. Ownership loans are for real estate purchases and requires three years of farming experience. The operating loans are for purchasing livestock, feed, seed, equipment, supplies, land or water development, reorganization, and certain other purposes. These borrowers are to have a 75% stake in the farm. Emergency loans are for recovery from natural disasters and quarantines.
Funding: The ownership loans are to have $150 million annually appropriated through FY 2018. There is $5 million annually appropriated through FY 2018 for a Beginning Farmer Individual Development Account pilot program.
History: ConAct was created in 1961 as an expansion of USDA lending activities.
For More Information, Visit These Sites:
The USDA's Authorizing Statutes Page

State Agricultural Loan Mediation Programs

Purpose: A matching grant program for states that provide third party mediation for agricultural credit disputes. The program is administered by the USDA's Farm Service Agency.
Funding: $7.5 to be annually appropriated through FY 2018.
For More Information, Visit These Sites:
The USDA's Farm Service Agency Program Page

Loans to Purchasers of Highly Fractionated Land

Purpose: Allows the USDA farm loan program to lend to Indian tribes or tribal corporations to buy highly fractionated land within the reservation.