WASHINGTON, D.C. (AVC News) — The U.S. Department of Agriculture is making changes to its farm loan programs aimed at improving access to credit for farmers and ranchers while reducing administrative requirements.
The USDA’s Farm Service Agency is streamlining the application process for certain direct loans, giving additional authority to experienced lenders and modernizing its technology for guaranteed loans.
Under the changes, the FSA is permanently implementing its Application Fast Track process for low-risk direct loan applicants. The program, which began as a pilot in 2023, has reduced processing times by about eight calendar days for qualifying applicants.
During the pilot, an average of 23% of direct loan customers qualified for the streamlined process.
The FSA is also changing its collateral valuation procedures for direct loans in an effort to speed up loan closings.
For guaranteed loans, the agency is streamlining requirements for lenders participating in its Preferred Lender Program. Beginning Oct. 1, qualifying preferred lenders will be able to use delegated authority to certify that applicants meet certain FSA requirements for creditworthiness, financial feasibility and adequate collateral, reducing the need for a detailed agency review.
USDA also is developing a new electronic system for guaranteed loans. The system is intended to replace much of the agency’s current paper-based process by allowing applications, lender notifications and supporting documents to be submitted electronically.
The new system is expected to begin in early 2027. Paper applications will continue to be accepted.
FSA farm loans are available to farmers and ranchers who are unable to obtain sufficient commercial credit at reasonable rates and terms. Loans can be used for farmland and personal property purchases, agricultural production expenses and day-to-day operating costs.
USDA officials said the changes are intended to make the loan process more efficient and improve access to capital for agricultural producers.
More information about FSA farm loans and eligibility is available through the USDA Farm Service Agency.
Last Updated on September 9, 2026 by AVC News
