Young & Beginning Farmer Loan Options

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