Ag Finance Programs

USDA Farm Service Agency's primary mission is to help Nebraska farmers and ranchers secure financial assistance from USDA through accurate, timely and efficient program delivery. The FSA does this through implementation of financial safety net programs, disaster recovery, incentive programs, the Conservation Reserve Program and farm and ranch loan programs.

From a financial credit standpoint, FSA is often viewed as a lender of first opportunity. The agency makes direct ownership and operating loans and also can work with local lenders to provide a guarantee on their operating and ownership loans. A key requirement is that these loans go to family-size farmers and ranchers who cannot obtain commercial credit from a bank or other type of lending institution. This is why beginners often get their start with FSA. Farmers and ranchers can use FSA loans to purchase land, livestock, equipment, feed, seed, and supplies, as well as to construct buildings or make farm or ranch improvements.  

In addition to the credit programs noted above, some of FSA’s financial safety net and disaster programs have provisions that are specifically applicable to those classified as beginners, which for FSA program purposes is someone who has operated a farm or ranch for less than 10 years.

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FCSA strongly supports rural America. They are a leading provider for loans and customized lease and risk management products for your business. NIFA backs these products and services with industry-leading tools to help with financial management and decision-making in your operation.

Young & Beginning Loans Program: A program for producers age 35 or younger, or with less than 10 years of experience, that meet our credit approval standards. This program helps get you the capital you need while you strengthen your financial position.

Development Fund Program: This program assists young and beginning producers who have a plan to start, grow or remain in agriculture by providing them with loans for working capital, breeding livestock, and contract-backed finishing facilities. The program also includes business planning assistance, coaching, and education.

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NextGen utilizes the Beginning Farmer Tax Credit Act to help new producers get a head start in farming and ranching while giving back to the farmers and ranchers who own agricultural assets. The program offers a refundable tax credit to the owner of agricultural assets who will lease to an eligible beginning farmer for a minimum of three years. The tax credit is equal to 10% of the cash rent or 15% of the value of the sharecrop rent each year for three years. The beginner receives a three-year lease, a personal property tax exemption for farm equipment and machinery, and a tax credit reimbursement for the cost of a financial management course.

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The Nebraska Advantage Rural Development Act, administered by the NDR, provides a refundable tax credit. Taxpayers engaged in livestock production who invest at least $50,000 for livestock modernization or expansion can use these credits against sales and use taxes or income tax liability. The amount of the tax credit for livestock production will be 10% of the investment, not to exceed $150,000. There are also benefits available for livestock production activity in eligible areas under the L1 and L2 levels of the program that have increased in both employment and investment.

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