The difficulty that beginning farmers face when trying to access new credit was a big topic of discussion during a House Ag Subcommittee hearing on credit programs for the next farm bill.
Justin Doerr, a beginning farmer, Plainview, Nebraska, told lawmakers how he got his start in the business after serving in the military during the war in Iraq.
Doerr told lawmakers he went through the application process with the Farm Service Agency for a loan to cover operation expenses – but he ran into outside factors that made an FSA loan unfeasible.
Testifying on behalf of the Independent Community Bankers of America, Jeff Gerhart, Chairman of the Bank of Newman Grove, Nebraska, told the panel that Doerr’s story isn’t uncommon.
Matthew Williams, Chairman and President of Gothenburg State Bank in Gothenburg, Nebraska, says the situation highlights the need to perhaps revisit term limits on beginning loans.
Witnesses offered several recommendations – like expanding the eligibility for guaranteed real estate loans – removing limits on the number of years producers can obtain guaranteed loans – and significantly increasing the loan limit size.
Share
South Dakota