The
United States’
U.S.
government's $2.65 billion operating loan program to help farmers
keep their businesses going has already run out of cash for this
fiscal year that ends Sept. 31.
That
happens as requests for federal financial assistance grow amid the
worst agricultural downturn in more than a decade, U.S. officials
said Monday.
As
a result, the U.S. Department of Agriculture is looking for other
money sources "to help bridge the gap in farm operating loans as
much as possible until additional funds are made available, either
this year or in the next fiscal year," the agency said.
Such
loan guarantees and direct loans through the USDA's Farm Service
Agency are often considered loans of last resort, say bankers and
economists.
Without
the financial support, some farmers may struggle to survive until the
next cash injection in the fall.
As
the rural sector struggles with low commodity prices and mounting
trade competition, U.S. grain farmers are increasingly relying on the
FSA for loan assistance. Agricultural lenders, too, are turning to
the agency to help guarantee the loans they are issuing to farmers -
whether for operational or real estate needs.
Even
with the operational loan program funding depleted, the applications
from farmers and bankers continue to grow.
"At
this time, there are already tens of millions (of dollars) in backlog
in Direct and Guaranteed operating loan accounts, and that number is
expected to increase through the end of the fiscal year," the
FSA told News Max Monday.
