FSA resumes crop loan disbursements

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WASHINGTON – USDA’s Farm Service Agency (FSA) Administrator Juan M. Garcia announced Friday the
processing and disbursement of 2013 crop commodity loans has resumed. Crop year 2013 commodity loan-making
was suspended Oct. 1 to make changes necessary to accommodate the automatic funding reductions known as
sequester."We must comply with the laws established by Congress to reduce funds in accordance with
sequestration policy," said Garcia."We regret the delay this has created in USDA issuing marketing
assistance loans because we know how critical the loans are to many farmers’ cash flow at this time of
year," he added."The commodty loan programs provide interim financing to producers for
agricultural commodities stored after harvest and then sold throughout the year. Producers requesting 2013
crop commodity loans on their harvested commodities now will have a 5.1 percent 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. The processing and disbursement of these applications will begin
immediately.For more information, farmers may contact their local county FSA office or go online to
www.fsa.usda.gov.

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