The USDA is making efforts to streamline the farm loan process, but that’s only one piece of the puzzle that is the current farm economy. The changes to the farm loan program come as farmers face increasingly tight profit margins and greater credit demand. Danny Munch, an economist with the American Farm Bureau Federation, said these changes should at least help farmers access the program.
While this is a great step towards modernization, Munch said increases still need to be made to farm ownership and farm operating loan limits in order to reflect the actual cost of farming today.
Munch said the USDA is able to improve the loan process, but only Congress can increase those loan limits via a new farm bill.
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