EPHRATA — Applications are being accepted for a U.S. Department of Agriculture program that provides loans to beginning farmers and ranchers, as well as farmers in “underserved” groups.

The loans are part of the Farm Service Agency program. “Each year a portion of FSA’s loan funds are set aside to lend to targeted underserved and beginning farmers and ranchers,” said Greg Anderson, executive director for the Grant County FSA office.

Beginning farmers must meet eligibility requirements for either direct or guaranteed loans, according to a FSA press release. All people involved in the farm operation must have run a farm for less than 10 years, and the applicant must work in the farm operation.

All direct farm ownership applicants must have participated in a farm or ranch operation for three years of the last 10 years. If the applicant is a farm operating as an entity, all members must be related by blood or marriage, and must be eligible beginning farmers.

The applicant farm can’t be bigger than 30 percent of the average size farm in the county.

Underserved applicants are “a group whose members have been subjected to racial, ethnic or gender prejudice because of their identity as members of the group without regard for individual qualities,” the press release said. Underserved groups are women, Hispanics, Native Americans, African-Americans and Asians.

Farmers and ranchers in those groups “who cannot obtain commercial credit from a bank can apply for either FSA direct loans or guaranteed loans,” the press release said. Two types of loans are offered through the program, farm ownership and farm operating loans.

Direct loans are made directly to applicants by the FSA. Guaranteed loans are made by lending institutions who arrange for the FSA to guarantee the loan; FSA can guarantee up to 95 percent of the loss of principal and interest.

Farm ownership loans can be used to purchase or enlarge a farm or ranch operation, build or improve buildings, promote soil and water conservation, purchase land easements or rights of way, and pay closing costs.

Farm operating loans can be used to purchase farm equipment, livestock and fertilizer or other supplies, the materials necessary for successful operations. They can be used to improve water systems or other physical improvements, farm living expenses and farm employee salaries.

Repayment terms depend on collateral requirements and usually run one to seven years. Loans cannot exceed 40 years.

People who want more information can contact the FSA office in Ephrata, 2145 Basin St. SW, 509-754-2463.

Cheryl Schweizer can be reached via email at education@columbiabasinherald.com.