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1st
Farm Credit Services is now a preferred lender for the
USDA’s guaranteed farm loan programs.
“The designation will have a tremendous impact on our
ability to serve young, beginning and small farmers,” said
President and CEO Wayne Gustafson. “Working with this
upcoming farming generation is a key part of our mission.”
Approximately 63 percent of all 1st FCS guaranteed accounts
are with young, beginning and small farmers. Today, this
equals nearly 100 loans with a commitment of more than $14
million. Presently, 1st FCS has more than $410 million in
loans outstanding to young and beginning farmers in its 42
county territory.
The
Preferred Lender Program (PLP) is a new status for elite
agricultural lenders experienced with USDA guaranteed loans.
PLP streamlines and adds flexibility to the loan application
and servicing requirements.
Under PLP, lenders process loans and guarantee requests with
reduced paperwork and supervisory requirements. “This new
designation allows 1st FCS to work with farmers who cannot
be served on a conventional basis,” Gustafson points out.
According to William J. Graff, Illinois Farm Service Agency
state executive director, 1st FCS will have less paperwork
and more time to provide credit to its clients now.
A lender
must have made at least 20 USDA guaranteed loans in the past
five years and have a low historical loss rate to qualify
for the PLP designation. Also, the lender must have a proven
record of submitting sound loan proposals and demonstrated
ability to service guaranteed loans.
1st Farm
Credit Services has established lending programs
specifically designed to serve young, beginning and small
farmers. These programs provide a means to offer dependable,
constructive financing and services to these producers for
their ongoing needs.
Producers in these
categories include those who are 35 years old or younger,
have less than 10 years of farming experience or normally
generate less than $250,000 in annual gross sales for
agricultural products. |
