USDA's Farm Service Agency (FSA) today announced that it has resumed the processing and disbursement of 2013 crop commodity loans. The commodity loan programs provide interim financing to producers for agricultural commodities stored after harvest and then sold throughout the year. Loan making for the 2013 crop year was suspended on Oct. 1 to make changes to accommodate for sequester spending cuts.
Producers requesting 2013 crop commodity loans on their harvested commodities will have a 5.1% reduction to the loan amount upon its disbursement, due to the sequestration. Commodity loans issued by marketing associations and loan servicing agents are also subject to the sequestration reduction.
During the period that loan-making was suspended, producers were still able to submit loan applications to their county FSA offices, marketing associations and loan servicing agents.
For further information about commodity marketing loans, farmers may contact their local county FSA office or go online to www.fsa.usda.gov.