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Lenders, producers press Congress to raise FSA loan limits and speed guarantees
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Summary
Lenders at the House Agriculture subcommittee urged higher Farm Service Agency loan limits, faster FSA guarantee timing and regulatory changes to allow bridge financing so beginning farmers can compete for land and expand operations.
Lenders and a producer told the House Agriculture subcommittee that Farm Service Agency (FSA) loan limits and processing times are constraining access to credit for beginning and expanding farmers.
Brian Gilbert, senior vice president and ag banking manager at First National Bank in Sioux Falls, told the panel that higher USDA guaranteed loan limits are needed to match current land values and production costs and described support for “$3,500,000 for ag real estate loans and $3,000,000 for guaranteed operating loans.” Gilbert said he uses FSA guaranteed loans and that joint financing—where FSA covers part of the financing—has expanded in recent years and helps beginning farmers enter the market.
Multiple lenders described delays in FSA approval as a practical barrier. Gilbert said non‑preferred lenders report approval times of “30 or 60 or 90 days,” which is slow relative to market timelines. Mandy Minnick, senior vice president at AgWest Farm Credit, said preferred‑lender status helps but “it can still take quite a long time for [loans] to come back from FSA,” especially when loans approach program limits and trigger additional review.
Several witnesses recommended an “express loan” concept modeled on SBA’s express program: lenders would accept a reduced guarantee in exchange for quicker approvals for loans up to $1,000,000. Brian Gilbert and other lenders said they would accept a lower guarantee if the tradeoff were faster decision times. Lenders also asked FSA to allow bridge or interim funding so banks can close on a land purchase and then refinance into an FSA loan, noting current FSA rules in some areas prevent that approach.
Why it matters: witnesses and members tied loan limits and timing to succession and competition for land. John Wicks, a fourth‑generation farmer from Montana, said FSA programs “made a big difference” in his ability to buy equipment and take over family land, but he described long approval timelines and recommended preapproval to avoid being outbid during lengthy debt approvals.
Members pressed for specific fixes. Chairman Scott said staff will identify whether proposed changes are legislative or regulatory and “follow up on that.” No formal committee votes were taken at the hearing.
Ending: Lenders asked Congress to raise FSA loan limits, streamline approvals for preferred lenders, consider an FSA “express” option, and change procedures to allow bridge financing followed by FSA refinance; staff follow‑up was requested.
