Agriculture Secretary Veneman Provides Nearly $100 Million to Assist Minority and Small Farmers

USDA FARM SERVICE AGENCY PRESS RELEASE, AUGUST 12, 2002
Release No. 0333.02; Contact: Alisa Harrison (202) 720-4623; Dann Stuart (202) 690-0474
Agriculture Secretary Veneman Provides Nearly $100 Million to Assist Minority and Small Farmers
WASHINGTON, Aug. 12, 2002: Agriculture Secretary Ann M. Veneman today announced that $98.2 million will be transferred from the U.S. Department of Agriculture’s guaranteed operating loan program to its direct operating loan program to help meet the needs of farmers and ranchers.
The funding transfer will particularly help minority and small farmers, who receive direct operating loans through USDA programs.
“We are committed to utilizing all resources available to help farm and ranch families, particularly minority and small producers, who need assistance,” said Veneman. “This transfer of funds will make low-interest loans available for an estimated 2,000 additional farmers and ranchers across America.”
Each year, approximately 14,000 minority, beginning and other farmers and ranchers receive direct operating loans from FSA. By law, the secretary has the authority to move appropriated funds between these loan programs to meet the needs of family farmers and ranchers. Direct loans are provided directly from USDA’s Farm Services Agency to the borrower. Farmers and ranchers must meet certain eligibility and other regulatory requirements.
Farmers and ranchers can use the low-interest direct operating loans to purchase livestock, equipment and feed; engage in conservation measures and refinance indebtedness.
Under the guaranteed loan program, FSA guarantees loans made by conventional agricultural lenders for up to 95 percent of the principal loan amount. The lender is responsible for servicing the borrower’s account for the life of the loan. The transfer of funds will not impact the availability of funds for the guaranteed operating loan program. There are sufficient funds to meet that program’s needs.
For more information on the direct and guaranteed loans programs, farmers and ranchers should contact or visit their local FSA offices.
Farm Service Agency news releases and media advisories are available on the web at http://www.fsa.usda.gov
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