More help is on the way for producers.
In an announcement earlier this week, Agriculture Secretary Tom Vilsack said a high demand for farm ownership and direct farm operating funds has prompted USDA to transfer appropriated funds between programs to meet the urgent credit needs of producers.
The Secretary noted that demand is strong for direct operating loans and guaranteed farm ownership loans, while demand for subsidized guaranteed operating loans has stabilized. With these funds, USDA can help thousands of producers establish and maintain their family farming operations and obtain long-term credit assistance through a commercial lender.
The transfer will make an additional $100 million in loan funds available for the direct operating loan program, which will provide 1,600 small, beginning and minority farmers with resources to establish and maintain their family farming operations. An additional $400 million in loan funds will be made available for the guaranteed farm ownership loan program giving an additional 1,000 family farmers access to commercial lending backed by USDA. Both programs ran out of funds resulting in a backlog of approved but unfunded loan applications.
The measure will allow all backlogged loans to be funded and provide sufficient funding for new loan applicants.
To find out more about USDA farm loan programs click here.