If you are between 10 and 20 and in 4-H, FFA or a similar group, USDA’s Farm Service Agency will lend you up to $10,000 for your own farm project: a few steers, a flock of laying hens, a vegetable plot, a small hay operation. It is a real loan with a real interest rate, but it is built for kids and teenagers, and paying it back on time can help you qualify for bigger FSA loans later.
Here is how FSA youth loans work, according to the program rules.
Who qualifies
Under the federal rules, you must:
- Be at least 10 and not yet 21 when the loan closes
- Be in 4-H, FFA or a similar organization while you run the project
- Have a project advisor who recommends you and keeps supervising the project, such as a 4-H club advisor, an ag teacher, a county extension agent or another agriculture group sponsor
- Have a parent or guardian’s written recommendation and consent if you are not yet a legal adult in your state
- Be a U.S. citizen or permanent resident and show you can plan, manage and finish the project
What the money can pay for
The loan has to fund a “modest, income-producing, agriculture-related, educational project.” FSA lists uses like:
- Buying livestock, seed, equipment and supplies
- Buying, renting or repairing tools and equipment
- Paying operating expenses for the project
The key word is income-producing. The project has to bring in money to repay the loan, so plan on selling what you raise.
The numbers
- Loan limit: your total youth loan balance can’t be more than $10,000 at any one time.
- Interest rate: the same as FSA’s direct operating loan rate, which was 5.375% as of October 1, 2026. FSA updates it monthly, and you get the lower of the rate on the day your loan is approved or the day it closes.
- Term: structured around the project’s income, up to 7 years. Balloon payments are not allowed.
- Security: FSA takes a lien on what you buy or produce with the loan.
How to apply
- Talk to your advisor first. Your 4-H leader, ag teacher or extension agent has to support the project.
- Write a simple project plan: what you will raise, what it will cost, what you expect to sell it for and when.
- Get your parent’s or guardian’s written consent if you are under the age of majority in your state.
- Apply at your county FSA office. Our guide to finding your local FSA office shows how. There is no sign-up deadline.
Why it matters later
Paying back a youth loan on time does more than close out the project. FSA’s rules for farm ownership loans ask for 3 years of farm experience in the last 10, and successfully repaying an FSA youth loan is one of the things that can count toward that requirement. For a farm ownership microloan, the time you spent repaying a youth loan can count toward the 3 years too.
After 21: loans for young and beginning farmers
Once you are past youth loan age, FSA’s beginning-farmer tools take over:
- Microloans up to $50,000 for livestock, equipment, feed and supplies, with a simpler application. See our FSA microloan guide.
- The Down Payment Loan, which lets beginning farmers buy a farm with 5% down. See our Down Payment Loan guide.
- Better EQIP terms for beginning farmers: a higher cost-share rate and advance payments for materials.
Our grants for young farmers page pulls the rest together, and how to start a farm with no money lays out the full path.
Frequently asked questions
How much can I borrow with an FSA youth loan? Up to $10,000 in total youth loan balance at one time.
How old do I have to be? At least 10 and not yet 21 when the loan closes.
Do I need a cosigner? The rules call for a parent or guardian’s written recommendation and consent if you are not yet a legal adult in your state, plus the support of a project advisor. Ask your county FSA office what they will need for your situation.
What is the interest rate on a youth loan? The same as FSA’s direct operating loan rate: 5.375% as of October 1, 2026.
Can I use a youth loan for a show animal? Only as part of a project that produces income, since the project has to repay the loan. Talk it through with your advisor and FSA.
The bottom line
An FSA youth loan is a small, real loan for a real project, and repaying it starts your track record with FSA. Line up your advisor, write the plan, and walk into your county FSA office with it.
Want to see the other programs for young farmers? Run our free eligibility checker or see our beginning farmer guide.
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