The USDA Farm Service Agency recently announced that additional funding is available for approved applicants that are awaiting farm operating loans. The funds that were reprogrammed by the Farm Service Agency, and approved by Congress, will add up to $185 million in additional funds for guaranteed loans. This will allow the Farm Service Agency to cover 305 of the projected shortfall in funds until the next fiscal year, October 1st.
The Farm Service Agency Administrator, Val Docini said, “Some of our farming and ranching customers are experiencing challenges due to market conditions and have been on a wait list for up to 60 days; so this will help those applicants whose paperwork has been pending the longest period of time to obtain credit or restructure loans as needed.” Dolcini added, “While the backlog in loan applications will grow between now and the end of the fiscal year, it is important for borrowers to continue to apply since we will process loans on a first-come-first-served basis based on the application date, once funding is replenished in fiscal year 2017”.
The high demand for Farm Service Agency loans in past years has made it to where funding for the loans is unable to meet the demand for what remains of the fiscal year. In the 2016 fiscal year, the Farm Service Agency guaranteed loans to more than 6,400 for farm ownership and operating.