At this point, Halfmann turned to the FSA’s Begin-
ning Farmer and Rancher Loan Program to help him acquire land and cattle. He heard about the program through word of mouth and through emails sent by the FSA.
Long, but positive process “It was a long process, but a positive experience,”
says Halfmann, who says the program is useful to ranchers wanting to increase their herds. “It allowed me to purchase more registered cows and our annual sale gives us marketing options.” Halfmann notes the differences in an FSA loan ver-
sus borrowing through a traditional third party lender. “No one has terms like the FSA,” he says. “These
loans gave us the opportunity to fi nance for 40 years with no money down. The interest rates are much lower, too. The payments are affordable and get you started with cash fl owing. Another difference is traditional lenders don’t have as many requirements.” This was actually a benefi t for Halfmann. “I had to
fi ll out detailed fi nancial statements about the struc- ture of my business,” he explains. “I was forced from the beginning to be responsible about my budget and expenses.” Since Halfmann wanted to purchase both cows and
land, he was able to use the Beginning Farmer direct and guaranteed loan programs through FSA. The object of these loans is to provide access to land and capital. Operating loans can assist beginning farmers and
ranchers by helping to pay normal operating or family- living expenses, open doors to new marketing oppor- tunities, assist with diversifying operations, and more.
I was forced from the
beginning to be responsible about my budget and expenses.
Judith A. Canales is the state executive director of
Texas. She says that since its inception in the 1930s, the heart of the FSA has been to help farmers and ranchers by providing low-interest loans, disaster assistance, price support and conservation assistance. “There has been a greater focus on new and begin-
ning farmers through the last several Farm Bills, with the most recent changes coming with the Agricultural Act of 2014,” Canales explains. “Starting at the top with Agriculture Secretary Tom Vilsack, we’re seeing a greater emphasis and attention on helping individu- als who want to start farming or ranching.”
tscra.org
Things to Consider For someone considering a career in agriculture or just getting started, Canales suggests you pause to thoroughly consider the next steps: PURPOSE: Why do you want to become a farmer or rancher? Whatever the reasons, you should step back and take a practical view of the farming life- style. PLAN: You may have the drive to start an agricul- tural enterprise, but do you have a plan to make it happen? A business plan details what you hope to do and maps how you expect to succeed. PRODUCT: What are you going to commit your time and money to producing? PEOPLE: Who are your business team, partners and community? More detailed and helpful guidance and information like this is available at the web page specifi cally de- signed for new farmers and ranchers. Please take the time to visit
newfarmers.usda.gov/new-farmers.
What Do I Need? When you visit an FSA Service Center for the fi rst time, it is important to bring the following informa- tion to expedite the enrollment process and begin learning about available benefi ts: Proof of Identity • Valid state driver’s license, passport or other form of personal identifi cation
• Social Security card or IRS paperwork that veri- fi es an Employer Identifi cation Number (EIN)
• Original documents are required Proof of Ownership • Copy of recorded deed or rental agreement as evidence of land ownership or control
Entity Identifi cation and Status • Copy of the articles of corporation • Trust and estate documents; or • Partnership agreements In addition, it takes time to process the paperwork and further information may be needed for com- modity, disaster and conservation program appli- cations. Halfmann and Canales recommend visiting the USDA FSA website at
fsa.usda.gov and type “Farm Loan Programs” in the search box for more information.
MORE November 2016 The Cattleman 71
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