Peterson Concerned About USDA Changes to Guaranteed Farm Loan Program

(WASHINGTON, DC) - In a May 1 letter to USDA Secretary Mike Johanns, U.S. Rep. Collin Peterson and other Members of Congress questioned a proposal to make changes to the Farm Service Agency guaranteed farm loan program.

“Farmers have enough obstacles to address in all their USDA paperwork,” Peterson said. “It’s ridiculous to impose these changes in a program that is already cost-effective and efficient.”

The letter charges that farmers and ranchers who have been served by the loan guarantee program would be imposed with fee increases of four to five times what they are today, and would undermine credit delivery to some producers.

“We are opposed to any proposal to remake the FSA guaranteed farm loan program into one based on user fees, and we urge you to reconsider any plans by the Department to propose rulemaking in this regard,” the letter reads.

Letter to FSA (PDF)

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