MANHATTAN, Kan. – U.S. Senator Jerry Moran (R-Kan.), Chairman of the Senate Agriculture Appropriations Committee, today joined U.S. Department of Agriculture (USDA) Farm Service Agency (FSA) Administrator Val Dolci in announcing that additional funding will be made available to assist more than 1,900 producers who have been approved for operating loans.
“Access to credit is essential to keeping American farmers in business, especially in the context of a farm economy as poor as it is right now,” said Sen. Moran. “FSA operating loans often serve as both the only line of credit available to beginning farmers and the last resort for producers without access to commercial lending. As chairman of the Senate Agriculture Appropriations Subcommittee, I will continue to work with USDA to make certain the demand for FSA operating loans is met. Farmers need every tool available to them as they deal with the strain of declining crop prices and revenues.”
Increased demand for FSA direct and guaranteed operating loans brought about a shortfall in available funds for fiscal year 2016 and left FSA unable to provide loans to more than 1,900 approved applicants. The Senate Agriculture Appropriations Subcommittee’s approval this week of USDA’s request to reprogram funding allowed the department to make additional funds available to help reduce the loan shortage.
The funds will leverage up to $185 million in additional lending for FSA operating loans, reducing the backlog of approved borrowers and bridging the gap until more funds are made available at the beginning of the next fiscal year on October 1, 2016. The Senate Agriculture Appropriations bill fully funds FSA direct and guaranteed operation loans at the requested amount for next fiscal year.