Farm4Profit Podcast
Young & Beginning Farmer Loan Options
Episode Summary
FSA Beginning Farmer Options - Kaitlyn Niemeyer @MoAgBanker. It was our pleasure to chat with the most entertaining AG banker on Tiktok! We lay out many of the loan options for young or beginning farmers looking to access capital. Kaitlyn is a proven resource for all those with questions, so listen in!
Episode Notes
FSA Beginning Farmer Options - Kaitlyn Niemeyer
Guest: Kaitlyn Niemeyer @MoAgBanker
Kaitlyn has been part of the banking industry since 2018 starting as a long specialist and now an AgriBusiness Officer. With First State Community Bank she is helping farmers through the FSA young beginning farmer loan process.
- Who is First State Community Bank?
- Believe in: helping our local economy, giving back, and people should alway come first (when it comes to banking)
- Mission: Financial success for our region
- Kaitlyn’s Background
- Family farm start in 1992 - grandpa built the original farm - Missouri
- 4th generation farmer
- Attended FarmCon 2023, attended the first ABA AG Bankers Conference
- TikTok: Moagbanker - huge on pushing FSA to young beginning farmers
- Why TikTok?
- Proud of her family farm and where it has gone in the past 10 years
- Graduated with a degree in Business Administration, Masters of Business Administration, Specializes in agriculture and commercial lending
- Why care about beginning farmers?
- How can you help them? (We)
- Beginning Farmer Loan Options through the FSA
- Young Beginning Farmer Direct Programs - FSA will lend 50% of loan amount or up to $600,000
- 50/50 Program (or no down payment program)
- 40 years
- 3% fixed
- No down payment
- 50%: FSA money
- 50%: banks
- Banks will then break the loan down into 2 notes
- FSA will guarantee 95% of the 50%
- Bank will take remaining 5%
- At the end of the day, you will have 3 notes with different interest rates
- 50/45/5 or Down payment program
- 20 years
- 1.5% Fixed
- 5% down payment
- 50%: FSA money
- 45%: Banks
- Banks will then break the loan down into 2 notes
- FSA will guarantee 95% of the 45%
- Bank will take remaining 5%
- At the end of the day, you will have 3 notes with different interest rates
- FSA does not give any money. They are just guaranteeing the loan. This option is offered for farmers who are not considered “Young Beginning Farmers”
- Total eligibility per person: $2,037,000
- The # 1 complaint is the application process. Is this improving?
- Does the FSA really take my 1st born child as collateral?
- Loan programs would be through FSA (Farm Service Agency) & USDA
- To get started application is all online - personal info and farming info needed - balance sheet is the most important for banker
- FSA Direct app went from 29 pages to 13
- What is your biggest challenge with the FSA?
- How community bankers help to get young farmers started in Ag
- How are you educating the beginning farmers?
- What are some of the first steps you would take with a beginning farmer?
- Are you aligning your team with what the farmers need? How so
- What are you most excited for in the future?
- What did we miss?
- What does success look like to you?
- Summary and Challenge