Farm Service Agency loans or loan guarantees could be delayed this summer, as demand is draining available funds. That is bad news for farmers and ag lenders. Several agriculture groups sent letters to U.S. House and Senate Appropriations Committees highlighting the rapidly increasing demand. The Farm Service Agency is expected to run out of funds for both direct and guaranteed loans later this month which could potentially delay up to $650 million dollars in loans for farmers. Farmers are increasingly turning to the FSA for loans, and ag lenders are looking to the agency for loan guarantees.
An FSA spokesman told the media that applications for operating loans are up 23 percent this year. The spokesperson says there will also be a backlog and wait list for the same kinds of loans and loan guarantees during the FSA’s fiscal year 2017. Earlier this year, Indiana FSA Director Julia Wickard told Hoosier Ag Today her agency could be out of funds to make loans by mid-summer.
Source: NAFB News Service