Experts Want to See Additional Help For Ag Loans and Grants

Many in the borrowing and lending business say the ag community needs more help from the federal government.  That was the take away from the 2017 Ag Bankers Conference recently in Milwaukee, WI.  Industry experts said they would like to see changes to the FSA Guaranteed Direct Loan Program.  Specifically the individual loan caps raised; and a higher amount of funding to the program as a whole.

Tim Buzby, Farmer Mac CEO, said you really can’t do one without doing the other.

“I think almost everybody in the industry is in favor of both of those things.  I think the concern is if you raise the individual loan limit but don’t increase the overall pot of money available to the program then fewer borrowers will be involved in the program.  So, I think people are looking, politicians in particular are looking for both of those items to occur.”

Other supporters of ag lending and FSA loans stressed the importance of these options, with more and more banks stepping away from the agricultural sector, due to the risk level of the industry.

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