Farm Service Agency loans or loan guarantees could be delayed this summer as demand is draining available funds, and that’s bad news for farmers and Ag lenders.
DTN reports that several agriculture groups sent letters to U.S. House and Senate Appropriations Committees that highlight the rapidly increasing demand. The Farm Service Agency is expected to run out of funds for both direct and guaranteed loans later this month, and that 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 DTN 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.