The Conservation Loan and Loan Guarantee Program
The Conservation Loan and Loan Guarantee Program authorizes loans and loan guarantees to cover costs of some conservation projects. Eligible borrowers include farmers and ranchers who are directly engaged in agricultural production. Preference is given to beginning and socially-disadvantaged producers, those converting to organic production systems, and producers who are applying systems to address compliance requirements.
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Land Use |
Cropland or grassland |
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Type of Program |
Loan and loan guarantee |
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Resource Concern |
Soil erosion, Water quality, Air quality, Wildlife habitat |
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Purpose |
Purpose is to assist producers to finance the cost of applying conservation systems needed for the operation. |
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Landowner Benefits |
Assists producers in financing the cost of installing approved conservation practices on their land. Priority is given to loan applicants who are awaiting funding for approved conservation plans. |
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Description |
Authorizes loans and loan guarantees to help farmers and ranchers with the cost of approved conservation projects. |
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Practices |
Any conservation activities included in an NRCS-approved conservation plan. Eligible conservation plans may include projects for construction or establishment of conservation structures, forest and permanent cover, water conservation and waste management system, improved permanent pasture, or other projects. |
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Costs to Landowner |
Producers may qualify for a loan guarantee of 75% of the principle amount of the loan. |
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Eligibility |
Farmers and ranchers who are directly engaged in agricultural production are eligible. Borrowers must be unable to obtain credit elsewhere. Priority is given to qualified beginning and socially-disadvantaged producers, those who use the loans to convert to organic agricultural production, and producers who use the loans to build conservation structures or establish conservation practices. |
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Contract |
Terms of the loans and loan guarantees vary. |
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Other Notes |
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Landowner Initiation |
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