Through an act of the Mississippi state legislation in 1996, the Small Farm Loan Program received 2.9 million dollars to establish a program that would provide 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. It is structured in this manner in order to help reduce the risk of failure and enhance success of the enterprise. The added advantaged to these farmers is that the loans are zero-interest, which eliminates the cost of borrowing capital.

The small farm loan serves Mississippi’s small scale and limited resource farmers to assist in improving enterprise efficiency, reduce cost of production, and improve farm profit. Applicants can borrow up to $25,000 to start or sustain operations in crop production, livestock production, to purchase equipment, and to establish value-added enterprises.

Cooperative loans are also available up to $50,000 for Mississippi’s agricultural cooperatives that have a membership that is majority small scale and limited resource farmers and socially disadvantaged producers. Applicants can borrow money to cover operation expenses, purchase livestock for resale to cooperative members, purchase equipment for use by members, and to start or expand a supply store for members.

Technical assistance is provided in completing the loan packet; farm record keeping (approved loans); enterprise budgeting; farm management; farm business planning, and farm financial management.

For additional information contact Velma Oliver, Farm Management/Loan Specialist, at (601) 877-6570 or [email protected].

Cooperative Loan Application

Small Farm Loan Application

Small Farm Loan FAQ