Surge in million-dollar operating loans to farmers
Ag bankers reported more than 40 percent growth in the volume of new operating loans during the summer compared to the third quarter of 2023, said the Kansas City Federal Reserve Bank. "For the first time in at least two decades, the volume of loans larger than $1 million eclipsed the volume of loans smaller than $1 million," said the regional Fed, based on a survey of banks across the nation.
Farmers take out more operating loans as revenue tightens
Bankers reported a 10-percent increase in farm operating loans this summer, compared to a year ago, said the Kansas City Federal Reserve Bank. "A moderation in the agricultural economy and lower farm sector liquidity has spurred higher financing needs and credit conditions have also shown signs of tightening," said the bank, based on quarterly reports from lender.
Farm finances are strong despite moderation in ag economy
Agricultural credit conditions are likely to remain strong through the end of this year, although bankers expect farm income and loan repayment rates, now the healthiest since 2010, to soften in the months ahead, said the Kansas City Federal Reserve on Thursday.
USDA earmarks $1.3 billion for debt relief to distressed farmers
Financially distressed farmers have received $800 million of an anticipated $1.3 billion to reduce their debts on USDA farm loans, said Agriculture Secretary Tom Vilsack on Tuesday. "Today, I've got to think there are thousands of producers out there who can breathe a little easier," he said during a teleconference.
Record subsidies but weaker ag sector during pandemic year
Farmers faced higher expenses and earned less money from their crops and livestock than initially expected in 2020, due to market disruptions caused by the pandemic, said a USDA Covid-19 working paper. By many standards, such as debt-to-asset ratio, the financial strength of the sector softened in 2020, despite $45.7 billion in federal subsidies — the largest ever — said USDA economists.
Agriculture can be climate leader with ‘build back’ funding, says Vilsack
The farm sector would gain $27 billion for climate mitigation, including payments for planting cover crops, from the social welfare and climate change bill passed by the House, said Agriculture Secretary Tom Vilsack. "Agriculture can lead the way in the fight on climate with climate-smart agriculture and forestry practices that sequester carbon, reduce emissions and create new and better market opportunities for producers."
New proposal in Congress on debt relief for ‘limited-resource’ farmers
Stymied by lawsuits that contend USDA debt relief for farmers of color is actually reverse discrimination, House Democrats proposed an alternative: full or partial forgiveness of USDA loans to limited-resource farmers. The multi-billion-dollar proposal, which does not mention race, is directed toward economically distressed farmers and ranchers in high-poverty areas.
Vilsack calls out farmers suing to block debt relief for minority farmers
Lawsuits to block $4 billion in loan forgiveness for minority farmers show a lack of historical awareness, said Agriculture Secretary Tom Vilsack at the BIO online convention on Wednesday. "It's a wonder where those farmers were over the last 100 years, when their Black counterparts were being discriminated against and didn't hear a peep from white farmers about how unfortunate that circumstance was."
Judge: Suit by white farmers might end debt-relief plan for minorities
A dozen white farmers "have established a strong likelihood" that a loan forgiveness program for minority farmers is unconstitutional, said the federal judge hearing the lawsuit in Green Bay, Wisconsin. District judge William Griesbach issued a nationwide order blocking debt-relief payments by USDA while he decides — possibly next week — whether to issue an injunction against the program enacted by Congress in March.
USDA launches loan-forgiveness program for minority farmers
Socially disadvantaged farmers will begin receiving letters this week alerting them of a Biden administration program to pay off loans they owe to the USDA — "historic debt relief" in the words of Agriculture Secretary Tom Vilsack. Loan forgiveness could total $4 billion by the time, later this year, the government retires bank loans made to minority farmers with USDA loan guarantees.
Operating loans drive decline in ag lending
With federal pandemic aid in their hands, farmers and ranchers borrowed far less money than usual from ag bankers during the opening months of this year for equipment, livestock, and operating expenses, according to a Federal Reserve survey of commercial lenders.
Biden to sign bill with $4 billion in debt relief for minority farmers
With Republicans complaining of discrimination against white farmers, the House passed a coronavirus bill on Wednesday that would provide an estimated $4 billion in debt relief for socially disadvantaged farmers.
After 20 years of advocacy, Black farmers finally get debt relief
Congress is poised today to pass one of the most sweeping relief programs for minority farmers in the nation’s history, through a provision of President Biden’s pandemic stimulus bill. Although the landmark legislation, which would cancel $4 billion worth of debt, seemed to emerge out of nowhere, it actually is the result of more than 20 years of organizing by Black farmers.(No paywall)
USDA debt relief for minority farmers is a certainty
In just one month, a proposal for $4 billion in debt relief for Black and other socially disadvantaged farmers went from just-introduced legislation to a near-reality, needing only a final vote in the House as early as Tuesday. The Democrat-authored initiative to retire the farmers' debts on USDA loans is part of the $1.9 trillion American Rescue Plan backed by President Biden.
‘One step closer,’ says Biden as aid bill moves to Senate
A three-month extension of higher SNAP benefits and $4 billion in debt relief for minority farmers are in the hands of the Senate following a 219-212 vote by the House over the weekend. "We are one step closer," said President Biden, who used the phrase to describe elements of the $1.9 trillion American Rescue Plan, from funds for coronavirus vaccinations and unemployment benefits to "helping millions of Americans feed their families."
Financial breather for 10 percent of USDA borrowers
The Biden administration on Wednesday announced a temporary suspension of past-due debt collections and foreclosures of farmers who borrowed money from the USDA and are in financial distress.
Higher crop prices and coronavirus aid boost farm income
Farm income recovered this summer from the steep coronavirus-driven declines of last spring, according to ag bankers in the Plains and Midwest who took part in Federal Reserve surveys. "An influx of government payments and higher prices for agricultural commodities provided greater support for farm finances in the third quarter and seemed to limit demand for financing," said a summary by two Kansas City Fed economists.
Financial stress rising in farm sector
The margin for error is shrinking in the farm sector as financial stress, measured by rising debt loads and the erosion of working capital, is rising, said Todd Van Hoose, chief executive of the Farm Credit Council on Wednesday.
Farmers cut costs, borrow less, in response to low profit margins
Pinched by continued declines in farm income, producers are tightening their belts this year rather than borrowing money from the bank, says a quarterly report by the Federal Reserve. The volume of new non-real-estate loans issued by ag bankers from January-March was down 16 percent compared to the same period in 2016, and it followed a significant decline in the closing months of 2016.