Rural Housing: Farm Labor Housing Loans And Grants

The Farm Labor Housing Loans and Grants program is a government housing loan which enables farmers to build, buy, repair or renovate housing for farm laborers. These loans can be obtained by farmers, farming associations and even public as well as non-profit organizations.

To the city dwellers, the country life always seems alluring. But the real fact is that with the constantly increasing consumer demands for farm products and shortage of funds, farmers often find it very hard to make their ends meet. For them the only option remains is to take the help of government loans. Farmers are always in need of huge funds for the improvement of their farm produce and also their property requirements. But with low earnings and hard to get finances, they find it really difficult to get adequate funds to obtain properties for their farming needs as well as their personal needs. However there are several government housing loans that provide grants to farmers to meet their construction requirements. One such program the Farm Labor Housing Loans and Grants helps farmers get loans and grants for buying properties for their farming as well as personal use.

Farm laborers are a very important part of every farm. The Farm Labor Housing Loans and Grants program provides financial assistance for the development and maintenance of housing for domestic farm laborers. Funds from this program are used for the construction, purchase as well as renovation and repair of living quarters for year-long and seasonal farm laborers, including those who work in the on-farm processing units and at aquaculture and marine agriculture centers. The funds can be used for purchasing a site or a leasehold interest in a site, and also for the construction of recreational rooms, infirmaries and day-care facilities; all for the use of the laborers. The loan can also be used for diverse activities like buying furniture for the housing or paying for the pending dues from previous loans.

According to the law only US documented farm workers can reside in these living quarters. These housing loans can be applied for by farmers, association of farmers, non-profit organizations, family farm corporations, association of farm laborers and also tribal and state government agencies. Like other government loans, those who cannot obtain loans elsewhere can get grants through this program with an interest rate dependent on the cost of Federal borrowing. Unlike other Government Loans, these funds can also be used in urban areas for farm laborers working in nearby farms. Providing financial assistance through these loans, full time farmers are given the option to tailor and modify the loans and grants as per their financial needs. But in case of seasonal workers, the loan revolves around their farming related needs like buying seeds, equipment etc.

At a nominal interest rate of 1%, the Farm Labor Housing Loans and Grants usually have a loan repayment period of 33 years. And up to 85%-90% of total development costs related to the financial needs of a farmer such as housing, buying seeds, farm equipment etc. may be covered up by these grants. Thus, through this rural housing loan, farmers can receive financial assistance to a great extent which can ultimately lead to the improvement in farm production.