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Abstract
The Farm Service Agency’s
(FSA) Farm Business Plan was
used to compare the
characteristics of beginning
farmers receiving direct Farm
Ownership (FO) loans in fiscal
2005 by the type of delivery
mechanism. Regular FO loans
were commonly used by small
and intermediate size family
farming operations while FO
loans made in participation with
commercial lenders were used
by larger commercial-sized
family farming operations. Startup
beginning farmers in the
Corn Belt were more likely to
utilize FO downpayment loans.
Regardless of the delivery
mechanism, nearly all
beginning farmers receiving
direct FO loans had credit
shortcomings that could inhibit
them from commercial credit.