The USDA Farm Service Agency (FSA) has resumed processing and disbursement of 2013 crop commodity loans. The loans provide interim financing to producers for agricultural commodities stored after harvest and then sold throughout the year. They were suspended on October 1st to make changes necessary to accommodate automatic funding reductions mandated by the federal budget sequester.
Producers requesting 2013 crop commodity loans on their harvested commodities will have a 5.1 percent reduction to the loan amount upon its disbursement, due to the sequestration. Commodity loans issued by marketing associations and loan servicing agents are also subject to the sequestration 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 details are available from your local FSA office or online at www.fsa.usda.gov.
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