Agriculture Secretary Tom Vilsack has told Congress he will use $500 million in discretionary spending to cover a projected budget shortfall for farm loans. FSA predicts a they’ll run out of money to fund guaranteed farm ownership loans during the fiscal year that ends in September. Center for Rural Affairs John Crabtree says the Ag Secretary’s decision is a wise one.
He says the USDA guaranteed farm loan program is the most critical for beginning farmers, especially with the current economic downturn.
Crabtree says this latest reported loan funding shortfall should be a signal to Congress to properly fund these important USDA programs.
Earlier Congress approved $2 billion for the guaranteed loan program.
