The United States Department of Agriculture's Farm Service Agency (FSA) has authority to provide credit to rural youth loans as a tool to encourage young people to participate in 4-H, Future Farmers of America (FFA), and similar organizations.

The United States Department of Agriculture's Farm Service Agency (FSA) has authority to provide credit to rural youth loans as a tool to encourage young people to participate in 4-H, Future Farmers of America (FFA), and similar organizations.
According to USDA-FSA farm loan managers, young people who are 10 to 20 years of age may establish and operate income producing projects of modest size in connection with their participation in 4-H clubs, FFA, or other similar organizations. Eligible loan applicants may be approved for a youth loan up to but not exceeding $5,000. Youths under 18 years of age must have concurrence of their parents or guardian. Each project must be part of an organized and supervised program of work. The project must be planned and operated with the help of the organization's supervisor, produce sufficient income to repay the loan, and provide the youth with practical business and educational experience.
FSA farm loan managers emphasize that because of changes made in the 1996 Debt Collection Act, it is extremely important that applicants, sponsors, and parents or guardians understand that if the loan is not repaid, the borrower would become ineligible for other government loans, such as student loans and/or housing loans.
Interested parties are urged to visit their local parish Farm Service Agency office for additional information concerning the eligibility and availability of youth related loans.