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USDA administrator says most farmers are surviving tough financial times

The USDA’s top farm loan program officer says he’s been pleasantly surprised by how farmers have held up financially in tough times.  Acting Deputy Administrator for farm loan programs Bill Cobb says, “The Guarantee Program, in fiscal year 2017, our numbers & total obligations were actually a little below the previous year.  We’ve also seen that our delinquency rates on the direct loans are actually a little lower than last year as well.”

Cobb tells Brownfield the agency has seen more activity in one program.  “We have seen an uptick in our Direct Farm Ownership loan program, and we think that’s probably because of beginning farmers.  We do have funds targeted to beginning farmers and about 61% of our direct portfolio is with beginning farmers that have been operating less than ten years.”

Cobb tells Brownfield that along with fewer delinquencies, total loan restructurings are also down in 2018 compared to 2017.  Looking ahead, Cobb says he does not expect any new USDA loan programs in the next farm bill, but perhaps some adjustments to existing programs.

He advises farmers considering a USDA lending option to sit down with a loan officer to discuss the options.

 Cobb spoke with Brownfield during the recent NAFB convention in Kansas City.