FSA announces resumption of 2013 crop commodity loan disbursements
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[November 13, 2013]
SPRINGFIELD -- Scherrie V.
Giamanco, state executive director for the Illinois Farm Service
Agency, announced last week that the processing and disbursement of
2013 crop commodity loans has resumed.
Commodity loan-making for crop year 2013 was suspended Oct. 1 to
make changes necessary to accommodate the automatic funding
reductions known as sequester. Sequestration is mandated by the
Balanced Budget and Emergency Deficit Control Act of 1985 as
amended by the Budget Control Act of 2011.
"We must comply
with the laws established by Congress to reduce funds in
accordance with sequestration policy," said Giamanco. "We regret
the delay this has created in USDA issuing marketing assistance
loans because we know how critical the loans are to many
farmers' cash flow at this time of year."
The commodity loan programs provide interim financing to
producers for agricultural commodities stored after harvest and
then sold throughout the year. Producers requesting 2013 crop
commodity loans on their harvested commodities now will have a
5.1 percent reduction to the loan amount upon its disbursement,
due to the sequestration. Commodity loans issued by marketing
associations and loan servicing agents are also subject to the
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During the period that loan-making was suspended, producers were
still able to submit loan applications to their county FSA offices,
marketing associations and loan servicing agents. The processing and
disbursement of these applications will begin immediately.
For further information about commodity marketing loans, farmers
may contact their local county FSA office or go online to
[Text from file received from
Illinois Farm Service Agency]