A $300,000 subsidy for a rural farm bank has been awarded by the USDA’s Office of Agriculture, Trade and Consumer Protection, which oversees the federal government’s program that helps farmers pay off their debt and sell their produce to consumers.
The loan, which was announced in April, was awarded to the rural farm loan provider, National Agricultural Bank of Idaho.
The bank will receive $500,000 in support to help it grow.
According to a press release from USDA, the rural loan was made possible by a $150 million program known as “agriculture finance” and by an earlier $50 million loan to a regional bank, which has since closed.
The USDA said it was working with National Agricultural Credit Union, a private lending agency that helps small and medium-sized farmers and ranchers finance their farm operations.
“As the nation’s largest private bank, we’re committed to ensuring the creditworthiness of our lending institutions,” USDA Secretary David Cote said in the release.
“These loans will help support the success of our programs that help farmers, ranchers, and small businesses.”
The farm bank is not the only program the USDA has used to help small businesses and farmers.
Last year, the agency awarded $2 million to help grow a farm loan program that covers about 70 percent of rural businesses, including the purchase of seed and fertilizer.
In September, the USDA also provided $150,000 to support the purchase and development of a small business loan program for small- and medium -sized farmers.