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Funding
FAQs
Funding at a Glance*
|
Program |
Total Available for FY 2004 |
Funds Used as of 08/31/04 |
Total Unused Funds |
No. of Loans Made |
|
Direct Operating |
$614,740,000 |
$588,018,000 |
$51,722,000 |
13,173 |
|
Guaranteed Operating - Unsubsidized |
$1,246,177,000 |
$915,572,000 |
$198,022,000 |
5,715 |
|
Guaranteed Operating- Interest Assistance |
$271,219,000 |
$267,456,000 |
$3,763,000 |
1,319 |
|
Direct Farm Ownership |
$128,396,000 |
$126,162,000 |
$2,234,000 |
1,083 |
|
Guaranteed Farm Ownership |
$964,220,000 |
$1,013,227,000 |
$100,993,000 |
3,466 |
|
Emergency |
$196,504,000 |
$30,339,000 |
$166,165,000 |
591 |
|
Boll Weevil |
$100,000,000 |
$97,695,000 |
$100,000,000 |
13 |
|
Indian Land Acquisition |
$2,000,000 |
$1,586,,000 |
$2,000,000 |
2 |
|
National Totals |
$3,523,256,000 |
$3,040,055,000 |
$525,618,000 |
25,362 |
*This table shows loans made and funds available for various loan
programs nationwide as of August 31, 2004. Availability of funds for
a particular loan will depend on allocations and targeting.
Funding FAQs
Q:
Someone at the FSA office told me the loan program I need
to apply for is out of money. Why does FSA run out of money?
Each year Congress appropriates money for FSA farm
loans as part of the USDA budget. The funds are appropriated
for the Government’s fiscal year, which runs from October
1 until September 30 of the following year. The amount of
money appropriated by Congress does not always meet the demand
for loan funds and the Agency may run out of money for some
programs.
Q: The local office tells me they
are out of loan money. But I know people in other areas are
getting loans. How can this be? Each year, when
FSA receives loan money in the budget, every state receives
an allocation of money from the Agency. So, one state can
deplete its funds and be out of money while other states are
still funding loans.
Q: What does FSA do when states start
running out of money in loan programs? When funds
in a loan program start to run low and many states are out
of money, the Agency will usually pool funds. Pooling means
taking all of the unused loan money from the states and placing
it in a National Headquarters pool. By pooling, FSA is able
to move money from areas where it is not being used to areas
where it is needed. If there is enough left, the money will
be redistributed to states. If there isn’t much left, the
money will be held at the national office, and states can
request funding on a loan-by-loan basis. Pooling of unused
loan funds most commonly happens in the spring.
Q: What happens when an FSA loan
program is out of money?
Congress may pass a supplemental appropriations bill to make
additional money available. If Congress does not appropriate
additional money, loans cannot be funded until the next fiscal
year when new appropriations become available.
Q: How does FSA allocate money to
the states to make loans?
The Agency allocates money based upon the potential need for
it. Money is allocated to states based upon the number of
farmers in each state, the value of farm assets, and net farm
income. The biggest factor in dividing the money among the
states is the number of farmers in each state. The loan volumes
of previous years are sometimes considered as well. FSA does
not allocate emergency loan money to states because it is
impossible to predict the occurrence of natural disasters.
Instead, FSA makes money available for loans when a natural
disaster is declared. Emergency loan money is available on
a first-come, first- served basis.
Q: Is any of the money targeted or
reserved for use by specific groups of farmers?
Yes. FSA reserves loan money for two specific categories:
under-represented groups and beginning farmers. The law requires
FSA to reserve or target a portion of its direct and guaranteed
operating and farm ownership loan funds for use exclusively
by socially disadvantaged applicants (SDA). SDAs are classified
in one or more of the following categories: women, African
Americans, Native Americans, Alaskan Natives, Hispanics, Asians,
and Pacific Islanders. In the farm ownership loan program,
the percentage of loan funds targeted for SDAs is based upon
the state percentage of the total rural population made up
of SDA groups, and the statewide percentage of total farmers
who are female. In the operating loan program, the target
is determined by the statewide percentage of total farmers
from the SDA minority group, and the statewide percentage
of total farmers who are female.
The law also requires FSA to reserve or target loan funds
for exclusive use by beginning farmers, as follows: Direct
Operating, 35 percent; Guaranteed Operating, 40 percent; Direct
Farm Ownership, 70 percent; Guaranteed Farm Ownership, 25
percent. Funds remain targeted for beginning farmers in the
guaranteed programs until April 1 of each fiscal year. In
the direct programs, funds are targeted for beginning farmers
until September 1 of each fiscal year.
Q: When a loan program is out of
money, should I still apply for a loan? Yes!! Even
when money has run out for a loan program, FSA still accepts,
processes, and approves loan applications. Approved loans
are held until money becomes available. Loans are funded in
date order, based on the date that the application was received.
Submitting an application sets your place in the waiting line
for funds, so it is to your advantage to apply for a loan
even when there is no money available.
Q: My application is approved, but
there is no money available. How can I find out where I stand
and when there will be money for my loan? Usually
when this happens, the county offices are required to submit
information about approved loans to the state office. The
state office staff sets up a waiting list for the state using
the loan application dates. The county office can tell you
if your loan has been sent to the state office and its status
for funding.
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