Ag bankers oppose new FSA loan fees.The American Bankers Association The American Bankers Association (ABA) is comprised of banks and other financial institutions. It seeks to promote the strength and profitability of the banking industry by Lobbying federal and state governments, building industry consensus on key issues, and providing products and urges Congress to fund the guaranteed loan programs at current budget levels and resist new user fees on USDA USDA, n.pr See United States Department of Agriculture. Farm Service Agency (FSA FSA Financial Services Authority FSA Food Standards Agency (UK) FSA Farm Service Agency (USDA) FSA Financial Services Agency (Japan) ) guaranteed farm loans, which are included in the proposed fiscal year 2007 budget. In testimony before Congress on June June: see month. 13, Dennis Everson, President, Agri-Business Division, First Dakota National Bank, Yankton, S.D., told the Senate Committee on Agriculture, Nutrition, and Forestry that FSA loans help finance machinery, livestock livestock Farm animals, with the exception of poultry. In Western countries the category encompasses primarily cattle, sheep, pigs, goats, horses, donkeys, and mules; other animals (e.g., buffalo, oxen, or camels) may predominate in other areas. , farmland and inputs. He said "increasing loan fees on the FSA guaranteed loan program is inconsistent with the goals of the program." Those goals include helping farmers and ranchers who need some additional support for borrowing, those who could qualify for commercial credit if they have some additional support. Each year, over $2 billion is loaned to farmers and ranchers through the FSA guaranteed farm loan program, yet loan losses are very low. Banks that make the initial credit decision are responsible for servicing the load throughout its duration. Everson's comments to Congress are available online at www.aba.com/aba/documents/press/TestDennyEverson61306.pdf |
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