(Hamilton, TX), April 1, 2009 – (Dale Vann), Farm Loan Manager for USDA’s Farm Service Agency in Texas announced today that FSA has obligated all of the $173 million provided in the Recovery Act for its Direct Operating Farm Loan Program, which gave 2,636 producers direct loans from the agency of which almost 50% were beginning farmers and 10% socially disadvantaged producers -. There were $12.3 million in loans made to 163 borrowers in Texas
“These loans were used to purchase items such as farm equipment, feed, seed, fuel and other operating expenses and will stimulate rural economies by providing American farmers funds to operate,” said Vann.
Applications were considered on a first come, first served basis with special emphasis placed on beginning and socially disadvantaged applicants. The maximum loan amount was $300,000.
In keeping with the president’s goal for the Recovery Act, this loan funding was intended for proper investment into the agricultural sector, to benefit both family farmers and rural economies. The Recovery Act was designed to preserve or create millions of jobs throughout the country and these loans help ensure that recipients remain financially viable and local agri-businesses benefit from direct purchases.
Here is a hypothetical example of purchases made with a $100,000 direct operating loan:
· Used Farm Tractor: $45,000
· Livestock: $18,000
· Seed: $15,000
· Fertilizer: $10,000
· Fuel: $12,000
The effect of this loan reaches the local implement dealership, sale barn, the grain seed distributor, the fertilizer distributor and a local fuel dealership.
For specific information on direct operating loans and other FSA farm loan programs, please contact D. Dale Vann, Sr. at 254-386-3913. You can also obtain information from the FSA website at http://www.fsa.usda.gov.