Farm Operating Loan Program 

Program Purpose & Use of Loan Proceeds

  • The purpose of this program is to provide cash flow relief for cow dairy farmers due to the industry-wide low milk price environment.
  • Eligible use of loan proceeds includes but is not limited to paying for operating needs and refinancing debt.  

Eligible Borrowers:

  • Any cow dairy farmer that meets the eligibility for financial assistance under the existing programs of the Vermont Agricultural Credit Corporation (VACC).

Loan Terms and Borrowing Limitations:

  • Maximum loan size: $150,000. 
  • Term & Amortization: loan term generally up to 5 years, fully amortizing. Up to 6 months interest only  may be available on a case-by-case basis. 
  • Interest Rate – variable rate based on VACC Prime - 1.5% for two years (currently 4.5%); thereafter going to VACC Prime (currently 6%).

Farm Service Agency (FSA) Guarantees:

  • VACC may request FSA guarantees on a case-by-case basis.


  • Commitment Fee of 0.5%.
  • Reimbursement of out of pocket expenses incurred by VACC.
  • Fees can be rolled into the loan amount.
  • FSA guarantee fee will be charged if applicable.

Application Process

  • Applications will be available online, here, from the VEDA/VACC offices, or by calling VACC at (802) 828-5467 or (866)-828-3276
  • Loans will be processed by VACC using a streamlined underwriting and credit review process.
  • Loans will be closed in an expedited manner.