EPHRATA - Basin farmers can take advantage of a new funding program through the U.S. Department of Agriculture Farm Service Agency to help finance start-up costs.

Libby Anderson, FSA farm loan manager for Grant and Adams counties, said the Micro Loan program gives new farmers and specialty farmers more access to credit.

"This is a new program we haven't had before," she said Thursday. "We're hoping to reach some of those niche markets that can't get funding elsewhere."

Eligible applicants can get a Micro Loan for up to $35,000, according to an FSA news release. The funds can be used to pay for initial start up costs; annual expenses such as fertilizer, seed, rent and utilities; livestock or equipment purchases or minor farm improvements like wells and coolers.

The repayment term of the loan may vary, according to the news release, but it won't exceed seven years.

Anderson said she hopes the new loan program encourages people who are thinking about starting a farm operation to take that next step.

"As long they have a mentor or someone to help them, they don't have to necessarily have farmed in the past," said Anderson.

Smaller farming operations like specialty crop producers or operators of community supported agriculture are also encouraged to apply for Micro Loans, according to the release.

Funding typically goes to beginning and minority farmers first, but other applicants are accepted as well, said Anderson.

She said the agency also has other loan programs for farmers in the area to consider.

Direct Operating loans may be made for one to seven years with a current operating interest rate of 1.375 percent, which is subject to change each month. Eligible applicants can obtain a direct operating loan for up to $300,000.

The funds can be used to build or repair buildings, pay for soil and water conservation practices or refinance debts, according to the release.

The agency also has Direct Farm Ownership loans for up to $300,000. The funds can be used to purchase a farm, according to the news release.

The terms of the farm ownership loan may extend to 40 years with a current interest rate of 3.5 percent.

Farmers can also apply for participation farm ownership loans, which are made with FSA and a commercial lender, according to the release.

"We still have money available at very low interest rates," said Anderson. "We want to help a lot of people who can't get funding elsewhere."

For more information on FSA loans, call 509-754-2463 ext. 2.