WASHINGTON - USDA's Farm Service Agency (FSA) Administrator Juan M. Garciaannounced today that the processing and disbursement of 2013 crop commodityloans has resumed. Crop year 2013commodity loan-making was suspended Oct. 1, 2013, to makechanges necessary to accommodate the automatic funding reductions known assequester. Sequestration is mandated bythe Balanced Budget and Emergency Deficit Control Act of 1985 as amended by theBudget Control Act of 2011.
"We must comply with the lawsestablished by Congress to reduce funds in accordance with sequestrationpolicy," said Garcia. "We regret thedelay this has created in USDA issuing marketing assistance loans because weknow how critical the loans are to many farmers' cash flow at this time ofyear."
The commodity loan programsprovide interim financing to producers for agricultural commodities storedafter harvest and then sold throughout the year. Producers requesting 2013 crop commodityloans on their harvested commodities now will have a 5.1 percent reduction tothe loan amount upon its disbursement, due to the sequestration. Commodity loans issued by marketingassociations and loan servicing agents are also subject to the sequestrationreduction.
During the period that loan-makingwas suspended, producers were still able to submit loan applications to theircounty FSA offices, marketing associations and loan servicing agents. The processing and disbursement of theseapplications will begin immediately.
For further information aboutcommodity marketing loans, farmers may contact their local county FSA office orgo online to www.fsa.usda.gov.