Participants in USDA's Guaranteed Farm Operating Loan Program are reminded that suspension of term limits on the program will expire on December 31, 2010, limiting the ability of some borrowers to continue obtaining credit in partnership with the Farm Service Agency. According to Ag Secretary Tom Vilsack, the expiration of the current waiver on term limits comes at a difficult time for many borrowers who have been affected by the unpredictable, cyclical nature of agriculture and its influence on farmers' businesses.
"USDA loan programs can mean the difference between surviving a tough year and losing the family business," Vilsack said. "USDA is supportive of the efforts in Congress to temporarily extend the current waiver. If successful, this effort will allow those family farmers who are faced with the term limit to continue to receive financial assistance from FSA that is critical to continuing their farming operations."
Borrowers who are imminently affected by a term limit on the Guaranteed Farm Operating Loan Program are being notified by mail. Borrowers that are notified and believe they need additional guaranteed operating credit before the end of this calendar year should contact their lender to discuss available credit options.