News

FSA Says Operating Loan Program Funding to Run Dry


For the second year in a row, USDA’s Farm Service Agency says its $2.65 billion operating loan program will likely run out of funds before the end of the fiscal year. USDA officials say the funds will likely run dry by the end of June, around three months before next year’s program starts on October first. Cash-strapped farmers and cautious banks have turned to the program amid the global grains downturn. These FSA loan guarantees and direct loans are typically considered loans of last resort, but an increasing number of agriculture lenders have turned to the program. The recent rebound in crop prices has not cooled demand. USDA data shows that at the end of May, applications for operating loans were up 23 percent and funding obligation had climbed 19 percent.

USDA officials and banking experts estimate the backlog of applications could total as much as $650 million by October.

Source: Hoosier Ag Today

ProAg Quick Links

Agent Toolbox Grower Toolbox Careers

ProAg News

Flooding Swamps Upper Midwest Harvest

Forecasts for heavy rain in the Upper Midwest for the final days of the official 2018 summer season have been verified -- and the result is not favorable for harvest....

U.S. Farm Debt Continues Its Upward March

With farm income having dropped and continuing to decline, there is beginning to be more attention paid to the level of debt in the U.S. farm sector....
Get ProAg updates via email
Your browser is out-of-date!

Update your browser to view this website correctly. Update my browser now

×