Farmers sometimes find it pretty hard to cope up with the consumer demands for farm products like rice, wheat, and milk products, etc. Due to low earnings, farmers are finding it really difficult to get easy finance with respect to getting hold of properties either to support their farming needs or their personal needs. In order to make the process seem simple to the farmers, banks and other financial institutions have come up with many programs to lend the farmers a hand in this respect. However, it is important that the farmers be aware of some of the programs that the institutions have to offer. One of the many programs that these institutions offer is the Rural Housing: Farm Labor Housing Loans and Grants program.
Programs like the rural housing farm labor housing loans and grants program help the farmers get the finance they need with respect to buying homes and properties that helps in fulfilling the farmer’s domestic (household) as well as farming needs.
The rural housing program covers the following aspects:
The Farm Labor Housing Loans and Grants program helps in providing capital loans to the farmers with respect to their housing needs. This program acts like a special mechanism, which helps the farmers to purchase, construct, develop and even restore or renovate their houses. These loans are not just limited to farmers that are employed in agriculture, but they also include the farmers/workers that are involved in pisci-culture/marine agriculture that includes fish farming as well as oyster farming. The loans when acquired by the farmers can be used for construction purposes with respect to housing, buying furniture for the house, pay the interest of any pending loans, and facilities that provide day care services for the farmers’ children, when they’re away for work.
The loan/grant process works in the following way: In case of providing financial assistance in the form of loans and grants to the full time farmers, the credit officers give the farmers the best option that suits their financial needs by tailoring the loans/grants, so that the farmers can save their money for their future needs. In case of part time farmers, their needs are characterized by their specific needs that are mostly limited to their farming activities. These part time farmers may need finance to buy new farming equipments, buying seeds, etc.
The Rural Housing farm Labor Housing Loans and Grants program is aware of the challenges that are faced by the part time farmers. This program provides loans in such a way that the payment of the interest directly depends upon the cash sales of the farmers. The grants that are provided by this program include the grants given to farmers’ associations, non-profit institutions, public organizations, etc.
These grants and loans are provided for a term of 33 years at a flat rate of interest of 1%. Some of these grants can also finance up to 85% to 90% of the total cost of development of the farmers’ financial needs such as housing, buying farming equipments, etc. This brings out a balance in case of satisfying the farmers’ needs immediately. All thanks to the labor housing program loan.
In order to get more information about this program, you can contact the nearest Rural Development office or get in touch with them through their website.