An FSA youth loan is a U.S. Department of Agriculture Farm Service Agency loan of up to $10,000 for people between the ages of 10 and 20 who want to run a small, income-producing agricultural project through 4-H, FFA, a Tribal youth group, or a similar organization. The interest rate is set by FSA and changes periodically, so check the current rate sheet before you apply.1Farm Service Agency. Current FSA Loan Interest Rates
Who Qualifies
You must be 10 to 20 years old at loan closing and a U.S. citizen, non-citizen national, or qualified legal alien.2Farm Service Agency. Youth Loans You also need to be an active participant in 4-H, FFA, a Tribal youth group, or a similar agricultural youth organization, and the project itself has to be organized, supervised, and educational.3Farm Service Agency. FSA Youth Loans
A project advisor signs on with you for the life of the loan. That’s usually a 4-H leader, a vocational agriculture teacher, or a county extension agent. The advisor endorses your application and agrees to help you with planning and management decisions as the project runs.4Farm Service Agency. Request for Youth Loan
If you are 18 or older when you apply, FSA pulls a credit report and you pay the fee. Applicants under 18 skip the credit report. Either way, you cannot have delinquent federal debts or unresolved past-due debt problems. There is no published minimum credit score, but a pattern of missed payments or judgments can disqualify you.5Farmers.gov. Farm Loans Application Quick Guide Youth Loans
What You Can Spend the Money On
The $10,000 cap is a ceiling on your total principal balance at any one time, not a per-year figure.3Farm Service Agency. FSA Youth Loans Funds go toward a modest, income-producing, agriculture-related project. Typical purchases include livestock, seed, equipment, and supplies, and operating costs like feed, fuel, and minor repairs also qualify.2Farm Service Agency. Youth Loans
The project has to generate enough revenue to cover interest and principal. It doesn’t need to be wildly profitable; the budget you submit just has to realistically show the project paying for itself over the loan term. Raising a few head of cattle, growing produce on leased acreage, or running a small poultry flock are the kinds of ventures this program was built for.
How to Apply
The core document is Form FSA-2301, “Request for Youth Loan,” available at any USDA Service Center or on the FSA website. It gathers your personal information, a description of the proposed project, a line-item budget, and your project advisor’s recommendation and signature.4Farm Service Agency. Request for Youth Loan
If you are under 18, a parent or legal guardian must sign the application to consent to the loan. That consent signature is not the same as co-signing the debt. A co-signer is required only when the project shows possible difficulty repaying the loan or does not meet security requirements, so many youth borrowers do not need one at all.2Farm Service Agency. Youth Loans
Your application package should include:
- A written project description covering daily operations, what you plan to produce or raise, and the educational goals.
- A budget with projected income and every anticipated expense, showing the project can cover its own debt.
- Your advisor’s recommendation, including how often they will meet with you.
- Your Social Security number and proof of residency status.
- If you are 18 or older, a personal or bank check payable to FSA for the credit report fee.5Farmers.gov. Farm Loans Application Quick Guide Youth Loans
Submit the package to the USDA Service Center that handles Farm Loan Programs in your area. Not every Service Center has loan staff on site, so call ahead. A loan officer then reviews feasibility and schedules an interview with you and your advisor or parent to walk through the details and the promissory note.5Farmers.gov. Farm Loans Application Quick Guide Youth Loans
Collateral
FSA takes a first lien on whatever you buy or produce with loan funds. Buy two calves, and the calves are the collateral. Grow a crop, and the harvested product secures the loan.6eCFR. 7 CFR Part 764 – Direct Loan Making
Youth loans skip the 150 percent security requirement that applies to larger FSA loan programs, and FSA will not ask you to pledge nonessential personal assets. If you already own livestock similar to what you are buying, FSA may take a lien on all the animals because separating them is impractical, but the agency will not reach for unrelated property.7Farm Service Agency. Direct Loan Making 3-FLP
Repayment and Personal Liability
Repayment runs from one to seven years. Shorter terms apply to operating expenses like feed and seed; longer terms cover equipment and livestock. The length depends on the loan amount, the purpose, and the nature of the project.2Farm Service Agency. Youth Loans
Signing the promissory note makes you fully and personally liable for the debt regardless of your age. Federal law specifically overrides the usual legal protections minors have around contracts, so a 12-year-old who signs an FSA youth loan note is just as obligated to repay as an adult borrower.8Farm Service Agency. Direct Loan Making 3-FLP If you default, FSA can seize the collateral, and unpaid federal debt affects your credit history.
The program carries one meaningful safety net. If you receive debt forgiveness on a youth loan because of circumstances beyond your control, FSA will not count that forgiveness against you when you apply for other USDA farm loans later. Forgiveness on a non-youth loan can permanently limit the federal farm financing available to you, but the youth loan is carved out.8Farm Service Agency. Direct Loan Making 3-FLP
After the Loan Closes
Once funds are disbursed, keep receipts for every item bought with loan money, and expect your Service Center to stay in regular contact about the project’s progress.5Farmers.gov. Farm Loans Application Quick Guide Youth Loans Your project advisor continues to supervise for the life of the loan, and organized records of income, expenses, and production are part of what FSA expects to see.