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
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