09/01/08 Higher USDA Direct Loan limit but no extra funds

Washington Ag September 1, 2008 Thanks to the new farm bill the limit for USDA's direct operating and farm ownership loans has been increased. The first increase in 24 years. Carolyn Cooksie helps run the loan programs for USDA's Farm Service Agency. She says the farm bill increased the amount a farmer can get in a direct loan from 200-thousand dollars to 300-thousand. There is a complication however. The appropriation for loan programs has not gone up. Cooksie: "And so the end result is we may be making larger loans to fewer farmers. But in today's farming world prices are so high that finally we understood in the farm bill that loan limits needed to go up." Cooksie says the higher limit is not just for new borrowers. Existing borrowers who reached the old limit of 200-thousand dollars will now be eligible to get more money. A reminder that sign up for the 2008 Direct and Counter-cyclical Payment Program continues until September 30th. Eligible producers may request to receive an advance payment of 22 percent of the direct payment for each commodity associated with the farm. You can sign up at a local USDA service center or online. I'm Bob Hoff.