By TIM THORNBERRY
Kentucky Correspondent

DUNKIRK, Ind. — At a time when many thought widow Erin Hamilton’s dream of farm entrepreneurship would die, USDA’s Farm Service Agency (FSA) made sure that didn’t happen. Through a program for socially disadvantaged farmers and ranchers (SDA), minorities and women are eligible for FSA loans.

According to information from the USDA, the agency “makes and guarantees loans to eligible socially disadvantaged farmers (SDA) to buy and operate family-size farms and ranches. Each fiscal year, the agency targets a portion of its direct and guaranteed farm ownership and operating loan funds to SDA farmers. Non-reserved funds can also be used by SDA persons.”

The USDA lists an SDA group as one “whose members have been subject to racial, ethnic or gender prejudice because of their identity as members of a group without regard to their individual qualities. These groups consist of American Indians or Alaskan Natives, Asians, Blacks or African Americans, Native Hawaiians or other Pacific Islanders, Hispanics and women.”

Michaele Wiegert is the loan officer at the Grant County, Ind., FSA office and is in charge of servicing Hamilton’s account (see related article) and guiding others through the loan procedure.

“The process is, that anyone coming through our doors needs to see if they can find financing elsewhere with reasonable rates and terms. They are asked to go to an ag lender and talk with that banker to see if they would fit into their direct program and get funding from them,” she said. “If not, then we see if that bank would be able to work with an FSA guaranteed loan. The risk is less on the bank for using a guaranteed loan.”

Wiegert emphasized that FSA looks through eligibility criteria for those unable to secure a complete loan to see how the agency can help through a variety of different loans. Making the public aware of the availability of such loan programs is a priority of the FSA, as much of the money available for these groups goes untapped.
Julia Wickard, executive director for Indiana FSA, said the agency is reaching out to women, ethnic and minority farmers in the state in an effort to get more of them involved in its programs.

“FSA programs are available to all producers but we would like to increase participation by traditionally underrepresented groups in all program areas,” said Wickard. “With these loan programs, FSA hopes to help reverse the declining number of farmers and ranchers across the United States and especially here in Indiana.

“These loans help to encourage and assist them in owning and operating their own farms and ranches, participate in agricultural programs and become integral parts of the agricultural community.”
She also said the FSA reserves a portion of its direct and guaranteed loan funds each year for SDA loans for eligible participants. For more about loans for socially disadvantaged producers, visit www.fsa.usda.gov or contact the FSA at the county USDA Service Center.