The American Bankers Association today expressed support for legislation introduced by Sen. Mike Rounds (R-S.D.) that would increase the lending limit and overall funding for the Farm Service Agency’s guaranteed farm ownership and operating loan programs. The bill calls for the programs’ total funding to be increased to $8 billion, and for the lending limit to be increased from $1.4 million to $3 million.
ABA noted that these programs are vital for providing credit to agricultural borrowers — particularly young, beginning and small farmers — and that the proposed increases would help reduce the likelihood of a funding lapse in the future. “With this additional funding, lenders would be able to help many more borrowers through potentially tough times in the agricultural economy,” the association said.