A Poultry Grower’s Guide to FSA Loans


Contract poultry farmers face many challenges in running their businesses. One of those challenges is getting accurate and complete information about the risks involved, and about the financial options available to them. To make good business decisions, farmers need complete information. We have developed this comprehensive guide to help farmers who are considering buying a contract poultry or livestock farm, or making a significant upgrade. 

Purpose of this Guide


Investing in a poultry operation is a big decision. The choices you make in this process, including what type of loan to apply for and even if you want to take this path at all, will have significant outcomes for your farm and family for years to come. For some people, a poultry contract has been a successful business; for others, it has led to the loss of farms and assets, which are historically important to their families. It is essential that you make this decision with a clear evaluation of the best information possible.

This guide will walk you through the decision making process, help you weigh the risks and benefits of investing in a poultry operation, and understand the FSA Loan application process step-by-step.

This guide was written especially for farmers who are:

  • Considering buying or building a contract poultry operation
  • Considering an upgrade to an existing operation
  • Or anyone who wants to learn more about the
    Farm Service Agency (FSA) Loan Programs.

If you are a farmer and have questions or would like to talk to someone about your business plans, call our Contract Ag Case Manager, Tyler Whitley: 919-621-0534 or email tyler@rafiusa.org.




A Poultry Grower’s Guide to FSA Loans

CONTENTS

A Poultry Farmer’s Guide to FSA Loans Presentation
A Poultry Grower’s Guide to FSA Loans Complete Guide
Table of Contents
Settings Your Goals
Red Flags
Introduction to Farm Loans
Introduction to FSA Loans
Critical First Step: Understand the Risks Before Financing Your Farm

Getting Ready to Apply for a Loan
Are You Eligible for an FSA Direct or Guaranteed Loan?
Types of Loans Available from FSA
Finding the Right Lender for an FSA Guaranteed Loan
Combined Loan Limits, Participating Loans and Joint Financing
The FSA Loan Application: Step by Step
Keeping Up with Loan Obligations
Trouble Repaying Your Loan: Restructuring and Default
Appendix 1: Cash Flow Worksheet
Appendix 2: State Regulatory Agencies
Appendix 3: Questions to Ask Before Signing a Poultry Contract
Appendix 4: Sample Pro Forma Cash Flow and Cost Estimates