Through an act of the Mississippi state legislature in 1996, the Small Farm Loan Program received $2.9 million to establish a program providing debt capital to small farmers who would otherwise be unable to obtain credit from traditional financial institutions. The loan program is a supervised credit program supported by technical assistance, designed to help reduce the risk of failure and enhance the success of agricultural enterprises. These loans are zero-interest, eliminating the cost of borrowing capital.
The small farm loan program assists Mississippi’s small-scale farmers in improving enterprise efficiency, reducing production costs, and increasing farm profitability. Applicants can borrow up to $25,000 to start or sustain operations in crop production, livestock production, equipment purchases, and value-added enterprises.
Cooperative loans of up to $50,000 are also available for Mississippi agricultural cooperatives. Applicants can use the funds for operational expenses, livestock purchases for resale to members, equipment for cooperative use, and the establishment or expansion of supply stores.
Technical assistance is provided for loan application completion, farm record keeping (for approved loans), enterprise budgeting, farm management, business planning, and financial management.
For additional information, contact Velma Oliver, Farm Management/Loan Specialist, at (601) 877-6570 or [email protected].