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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.

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