In the 2018 Farm Bill, GAO’s report only assesses private lending entities andĮxcludes USDA direct loans made by FSA from its analysis. With a federal guarantee of a certain amount of the principal. As mandated Direct loans are madeīy FSA, while guaranteed loans are made and administered by private lenders Operating loans to farmers and ranchers across the country. ![]() Private lenders and federal agencies conduct outreach to SDFRs, but the effectiveness of these efforts in increasing lending is unknownĪgency (FSA) county offices provide direct and guaranteed farm ownership and.SDFRs are more likely to operate smaller, lower-revenue farms, have weaker credit histories, and/or lack clear title to their agricultural land, which can make it difficult for them to qualify for loans.Many female farmers and farmers of color have reported experiencing discrimination in obtaining agricultural credit.Farmers of color and women comprise a disproportionately small share of agricultural producers.Comprehensive data on SDFRs’ agricultural debt is not available because regulations generally prohibit lenders from requiring demographic data on loan applicants.The report explores: 1) what is known about SDFRs access to private agricultural credit 2) challenges faced by SDFRs in accessing loans and 3) the outreach conducted by USDA, Farm Credit System (FCS) associations, and other private lenders to SDFRs. GAO recently completed its investigation and released its findings in a report to Congress, Agricultural Lending: Information on Credit and Outreach to Socially Disadvantaged Farmers and Ranchers Is Limited. On how socially disadvantaged farmers and ranchers (SDFRs) are accessing ![]() ![]() Government Accountability Office (GAO) to investigate and publish its findings To these claims, Congress included a provision in the 2018 Farm Bill requiring the However, many producers andĪspiring producers of color, as well as female producers, have reported facingĭiscrimination when attempting to obtain agricultural loans from private Ranchers interested in acquiring land, purchasing major equipment, and even establishingĬonservation practices, access to credit is a must. Photo credit: USDA.Įditor’s Note: This post developed by Emily Miller (NSAC Policy Intern) and Tyneshia Griffin (NSAC Grassroots Intern)
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