The U.S. Department of Agriculture Farm Service Agency (FSA) has resumed processing and disbursement of 2013 crop commodity loans to provide interim financing to producers for agricultural commodities stored after harvest and sold throughout the year.
Commodity loan-making for crop year 2013 was suspended October 1 to accommodate the automatic funding reductions known as sequester. Sequestration is mandated by the Budget Control Act of 2011.
“We must comply with the laws established by Congress in accordance with sequestration policy,” said FSA Administrator Juan Garcia. “We regret the delay this has created in USDA issuing marketing assistance loans, because we know how critical the loans are to farmers’ cash flows at this time of year.”
Because of sequestration, producers requesting 2013 crop commodity loans on their harvested commodities will have a 5.1 percent reduction to the loan amount upon its disbursement. Commodity loans issued by marketing associations and loan servicing agents are also subject to the reduction.
During the period that loan-making was suspended, producers were still able to submit loan applications to their county FSA offices, marketing associations and loan servicing agents.
For further information about commodity marketing loans, farmers may contact their local county FSA office or go online to www.fsa.usda.gov.
Source – USDA