The new microloan programme is aimed at bolstering the progress of producers through their start-up years by providing needed resources and helping to increase equity so that farmers may eventually graduate to commercial credit and expand their operations.

The microloan programme will also provide a less burdensome, more simplified application process in comparison to traditional farm loans.

"I have met several small and beginning farmers, returning veterans and disadvantaged producers interested in careers in farming who too often must rely on credit cards or personal loans with high interest rates to finance their start-up operations," said Secretary Vilsack.

"By further expanding access to credit to those just starting to put down roots in farming, USDA continues to help grow a new generation of farmers, while ensuring the strength of an American agriculture sector that drives our economy, creates jobs, and provides the most secure and affordable food supply in the world."

NFU President Roger Johnson said: “The next generation of family farmers are critical to the continuation of the long tradition of agriculture in our country.

“This announcement is a tremendous benefit to those looking to enter into farming.“

“Beginning farmers and ranchers and veterans will greatly benefit from this programme, and a streamlined application process is of great value.

“Access to credit is one of the greatest challenges that beginning farmers and ranchers face, and I commend the department for proposing a common-sense way to help alleviate the problem.“