National Farmers Union President Roger Johnson says USDA’s proposed modifications to the Operating Loan application to create a new microloan category will benefit beginning farmers and ranchers. This new category would provide flexible capital to farmers requiring operating loans of 35-thousand dollars or less. Johnson says NFU members believe the ability of the next generation of family farmers to continue to produce food and fiber is critical to the economy, health and security of our nation and local communities. To address that concern – he says programs must be in place and funded to meet the unique needs and barriers facing beginning farmers and ranchers.

NFU notes the proposed modifications would also streamline and simplify applications to ensure candidates don’t spend excessive amounts of time on their paperwork. Johnson says modifications to the yield reporting requirements will prevent diversified farmers growing a wide variety of produce – for example – form demonstrating inaccurate yields. Additionally – according to Johnson – decreasing the collateral requirement from 150-percent of the loan amount to 100-percent effectively secures the loan while allowing farmers with limited assets to access credit.