Concerns Over Farm Loans Grow In D.C.

Farm lending concerns came up at a recent Senate disaster aid hearing as lawmakers grappled with the lack of a Farm Bill and help for financially struggling producers.

“I’ve never been in a situation where the bankers are coming in saying, ‘if you don’t do something, we’re not going to be able to, because of our bank examiners, we’re not going to be able to provide the credit that our farmers need’,” noted top Ag Republican John Boozman.

Boozman added other Senators texted him during the pre-election break, saying that farmers wanted to know where the farm bill was.  Now, with just three legislative weeks left between Thanksgiving and Christmas, a last-minute bill is no longer expected.

During the hearing, Deputy Ag Secretary Xochitl Torres-Small was asked if she’d had a chance to talk to lenders.

“We recognize there are concerns about lending in several markets, both in terms of commodities, but also in terms of specialty crops, as well as biofuels and biodiesel," Torres-Small said.  "And we, as lenders ourselves, are still seeing strong repayment. So, we do know that, at the same time, there are opportunities for farmers out there, and we continue to work to make sure our loans are as accessible as possible.”

The American Bankers Association told a House Ag hearing in July that farm lenders fear an “economic cliff” in farm country without a new farm bill.  That, as farmers exhaust working capital and turn to refinancing debt.

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