Farm groups and Ag lenders including the National Young Farmers Coalition have written to Congressional Appropriators expressing concern that FSA may run out of funds for loan guarantees. Coalition Board member Brian Depew who also serves as Executive Director for the Center for Rural Affairs says both FSA loan programs are in dire shape.
He says while FSA loans make up only about 5 percent of the total ag lending market, those programs are even more important for beginning farmers and veterans.
Depew says beginning farm operators are being hammered by high land values and now lack of funding for needed loan programs.
FSA was budgeted $ 2 billion for guaranteed farm ownership loans and $ 1.67 billion has been funded so far. Depew says funding is even more short for FSA operating loans.
