Showing posts with label ARPA. Show all posts
Showing posts with label ARPA. Show all posts

Monday, March 15, 2021

Clayton on Farm Loans and ARPA

 Chris Clayton who writes for Progressive Farmer has more clout than I do, or is smarter in the ways of USDA press.  He got data from USDA on the size and number of farm loans which FSA has made or guaranteed, plus the breakdown by socially disadvantaged farmers. Here's his writeup.

If you're interested, you should read it.  Things which strike me now:

  • He lists the top states in socially distanced loans. As always, assumptions will mislead--Oklahoma, California, and Wisconsin are on the list, but Alabama and the Carolinas aren't, and Mississippi is the last one listed.  I've nothing better to do than speculate, but my guess is some states, like Oklahoma, jumped on the legislative changes for such loans, and promoted them (or maybe they had especially active NGO's among minority groups).  With that in mind you can guess that many loans have not gone to black farmers, but other groups.
  • Much of the publicity around the debt forgiveness payments seems to have been centered around black farmers associated with the Pigford suits. I haven't seen any discussion of a seeming paradox: farmers claiming their loan applications were denied because of discrimination but now working for forgiveness of their loans.  (I wrote "seeming" because I can imagine circumstances in which it would make sense, at least for some.)
  • I wonder if women's groups will push for a "correction" to the law to include them as "socially disadvantaged". 
  • I hope there will be good data from the implementation of this provision. If my speculation is right will there be discontent among the black advocates for it? I remember seeing one activist commenting that the lawyers made out well from the Pigford suits, but not the farmers. He might find a similar problem now--other minorities getting more money and black farmers less than they had expected.



Thursday, March 11, 2021

The Amount of Outstanding Farm Loans

 Trying to find out the total dollars of farm loans FSA/CCC has on the books, which might be subject to the provisions for debt forgiveness payments under ARPA.

There's this quote:

FSA farm loan programs provide an important safety net for producers, by providing a source of credit when they are temporarily unable to obtain credit from commercial sources. The majority of FSA’s direct and guaranteed farm ownership and operating loans are targeted to underserved populations such as beginning farmers and socially disadvantaged producers, who generally have had a more difficult time obtaining credit to maintain and expand their operations. In 2019, FSA provided 32,240 direct and guaranteed loans to farmers and ranchers, totaling more than $5.7 billion

And this chart:

Both from this 2021 Budget document. 

I'm not sure what to make of the data--it seems that the forgiveness might cover more than half the outstanding loans.

Wednesday, March 10, 2021

More on ARPA

 According to the Post article yesterday, the Farm Bureau estimates the cost of the 120 percent payments to indebted socially disadvantaged farmers will be $4 billion.

One of my frustrations is the difficulty of finding  current CCC financial data.  IIRC once I found it over in the Treasury website, but it's definitely not a user-friendly process. 

I would like to find the basis for the estimate--what's the total outstanding debt for all farmers in the categories eligible for the forgiveness payments?  Just sent USDA a request for the data--will see if they can respond.

Tuesday, March 09, 2021

FSA and American Rescue Plan Act Provisions

 Looks to be a couple provisions of the American Rescue Plan  which impact FSA:

  • a provision for paying 120 percent of outstanding indebtedness for loans made or guaranteed by USDA to socially disadvantaged farmers or ranchers.  My guess is it might be easy to administer, assuming FSA records currently record a farmer's status as disadvantaged or not.  The problem will be with those with outstanding loans who aren't disadvantaged, and will yell at the counter clerk  program tech.  Need to have the numbers of the local offices of the Congressional representatives handy.
  • the other provision provides $1 billion for things which seem to be outlined in the Sen. Booker and Sen. Warnock "Justice for Black Farmers" bill.  
There is provision for $47.5 million for expenses (which won't all be FSA, but some might be.