FSA offers guaranteed loans

There’s no doubt the turbulent economy has impacted all business sectors, and the agriculture industry is no exception. Like most lenders these days, those who work with Texas farmers and ranchers also are limited in their ability to offer financing. Fortunately, there’s another option for the agriculture community.

USDA has a lending assistance program that gives both lenders and farmers a chance to acquire security in borrowing money. The Farm Service Agency (FSA), a branch of USDA, is offering farm loan guarantees that are beneficial for farmers and ranchers who do not qualify for loans in their communities due to minimal cash flow, limited experience or minimal equity.

It’s a win for both the lenders and producers. Lending institutions will have security in issuing these loans to farmers and ranchers, and producers will get the funds they need to continue farming and ranching operations that are critical to the food and fiber supply of all Texans.

Starting this month, FSA is holding workshops for lenders to learn more about the Guaranteed Loan Program. These sessions will offer pertinent information for lenders to implement these loans in their institutions, so make sure to tell your lender about them. There are four more information sessions this year:

August 23 – 24, Mesquite, TX
November 17 – 18, Lubbock, TX
October 6 -7, College Station, TX
December 8 - 9, College Station, TX

For more information, contact your local Farm Service Agency county office here.

Southern Association of State Departments of Agriculture (SASDA)

I am in Oklahoma City this week with agriculture commissioners and secretaries from 16 other states and U.S. territories for the Southern Association of State Departments of Agriculture (SASDA) annual conference. SASDA meets prior to our national and international meetings, which follow later this year, to allow us to take a more focused look at the issues that affect our southern region.

We are sharing concepts and ideas on how to assist our farmers and ranchers in generating additional income through agritourism; how to create a strategy to ensure the voice of agriculture is not ignored in the negotiations over environmental issues; and how to receive updates directly from the new administration regarding key items.

One such item is the disaster payment program schedule. These payment programs, administered by the Farm Service Agency (FSA), provide assistance for natural disaster losses resulting from drought, flood, fire, freeze, tornadoes, pest infestation and other calamities. FSA passed on great news that the new Livestock Indemnity Program will be announced any week now, allowing Texas livestock producers to be compensated for losses they have experienced since the 2008 Farm Bill was passed a little over a year ago. I advocated for this program and look forward to the results soon.

We also are on working with the Market Access Program (MAP) to maximize export opportunities. This program uses funds from USDA’s Commodity Credit Corporation to help U.S. producers, exporters, private companies and other trade organizations finance promotional activities for U.S. agricultural products. The MAP encourages the development, maintenance and expansion of commercial export markets for agricultural commodities. The southern states are working together to ensure trading relationships are strengthened.