US farmers leaning more heavily on government loan programs

Farmers took out more loans last year, and the USDA expects more delinquencies as a result of coronavirus fallout.

By

National News

May 21, 2020 - 9:06 AM

Photo by Jen Theodore/Unsplash

BELLE PLAINE, Kan. (AP) — Farmers across the nation leaned more heavily upon the federal government last year to finance their agricultural operations amid low commodity prices and trade disputes, and more of the money they borrowed is now delinquent.

Although the U.S. Agriculture Department said it has not seen a significant change in loan delinquency rates because of the coronavirus pandemic, it expects an impact if the economic fallout continues. 

Farm foreclosures have not increased, and the department has taken a number of measures to forestall them — including more flexibility for borrowers to extend repayments for annual operating loans.

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