Farm lending concerns came up during a disaster aid hearing in the U.S. Senate as lawmakers grappled with how to help financially struggling farmers and ranchers without a new farm bill.
Senate Appropriations Committee member and top Senate Ag Republican John Boozman from Arkansas says he’s hearing from financial lenders about the difficulty producers could have getting operating loans in 2025.
“I’ve never been in a situation where the bankers are coming in saying, ‘if you don’t do something, we’re not going to be able to, because of our bank examiners, we’re not going to be able to provide the credit that our farmers need.”
Boozman asked U.S. Department of Agriculture Deputy Secretary Xochitl Torres-Small if she has talked to lenders.
“We recognize there are concerns about lending in several markets, both in terms of commodities, but also in terms of specialty crops, as well as biofuels and biodiesel. And we, as lenders ourselves, are still seeing strong repayment. So, we do know that, at the same time, there are opportunities for farmers out there, and we continue to work to make sure our loans are as accessible as possible.”
The American Bankers Association told a House Ag hearing in July 2024 that agriculture lenders fear an “economic cliff” in farm and ranch country without a new farm bill. But, with roughly three legislative weeks left between Thanksgiving and Christmas, a last-minute farm bill is not likely to be passed.
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