NEASDA MEMBERS SEEK USDA ATTENTION TO FARM LOAN NEEDS
News Date March 09, 2010
In a letter to Agriculture Secretary Tom Vilsack, members of the Northeast Association of State Departments of Agriculture (NEASDA), a regional association of NASDA members from Northeastern states, encouraged aggressive action to provide critical access to credit for farmers in 2010, especially in the form of loan guarantees and direct loans. Even though the members are confident farmers will be served by the Farm Credit associations, commercial banks and other lenders, it is highly likely their difficult financial positions will lead them to rely on the USDA Farm Service Agency (FSA) for loan guarantees and direct loans.
NEASDA members also expressed concern over certain FSA ownership eligibility requirements that are subsequently limiting program usage. According to the letter:
“It is our understanding that farms that are organized with both and operating Limited Liability Company (LLC) and an ownership LLC are not eligible for FSA loan guarantees. Similar restrictions apply for operations that are owned by a family trust. There are many reasons for differing farm ownership structures, including facilitating transfer of the farm from one generation to the next. These types of FSA restrictions can reduce overall program effectiveness and USDA’s ability to support individual farm operations. We urge USDA to make eligible all farm operations for FSA loan programs regardless of business structure.”
NEASDA members represent the following Northeastern states: Connecticut, Delaware, Massachusetts, Maine, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island and Vermont. (Contact: David Hickey)