News

Administrator talks FSA loans with R-CALF USA members during annual meeting

Farm Service Agency loan programs are critical for many producers to build and sustain their family operations, especially as input costs push higher.  Following his comments at the R-CALF USA annual meeting, USDA FSA Administrator Zach Ducheneaux was asked by a cattle producer where loan limits might head as debate continues on the 2023 Farm Bill.  “This administration is in a responsive posture to farm bill initiatives from the Hill,” he says. “We will provide meaningful, timely, technical assistance on the recommendations that the Hill says that they’re considering.”

However, he says, he’d like to have the same authority and loan limits as guaranteed lenders because many of the producers served by the FSA can’t get into a guaranteed loan at an affordable rate.  “Our guiding statute says if a producer can prove to the Secretary, in writing, that they cannot secure credit elsewhere sufficient to meet their actual needs at reasonable rates and terms, we should serve them,” he says.  “And we can’t do that with the limits that we’ve got meaningful enough in this market.”

Current maximum loan limits are $400,000 (direct operating); $600,000 (direct farm ownership); compared to $2.037 million (guaranteed operating/ownership). 

FSA’s Direct Loan Program is designed to help farmers start, purchase, or expand their farming operation.  FSA Guaranteed Farm Loans are available to farmers who may not meet loan qualifications from a commercial lender. 

R-CALF USA’s meeting runs through Friday.

Farm Service Agency loan programs are critical for many producers to build and sustain their family operations, especially as input costs push higher.  Following his comments at the R-CALF USA annual meeting, USDA FSAAdministrator Zach Ducheneaux was asked by a cattle producer where loan limits might head in the 2023 Farm Bill.  “This administration is in a responsive posture to farm bill initiatives from the Hill,” he says. “We will provide meaningful, timely, technical assistance on the recommendations that the Hill says that they’re considering.”

However, he says, he’d like to have the same authority and loan limits as guaranteed lenders because many of the producers served by the FSA can’t get into a guaranteed loan at an affordable rate.  “Our guiding statute says if a producer can prove to the Secretary, in writing, that they cannot secure credit elsewhere sufficient to meet their actual needs at reasonable rates and terms, we should serve them,” he says.  “And we can’t do that with the limits that we’ve got meaningful enough in this market.”

Current maximum loan limits are $400,000 (direct operating); $600,000 (direct farm ownership); compared to $2.037 million (guaranteed operating/ownership). 

FSA’s Direct Loan Program is designed to help farmers start, purchase, or expand their farming operations.  FSA Guaranteed Farm Loans are available to farmers who may not meet loan qualifications from a commercial lender. 

R-CALF USA’s meeting runs through Friday.

AUDIO: Question on FSA Loans and the 2023 Farm Bill

Add Comment

Your email address will not be published.


 

Stay Up to Date

Subscribe for our newsletter today and receive relevant news straight to your inbox!