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Roberts opposes new user fees for farmers and ranchers with FSAKansas U.S. Senator Pat Roberts sent a letter Aug. 4 to U.S. Secretary of Agriculture Mike Johanns expressing continued opposition to the U.S. Department of Agriculture's proposal to raise user fees for farmers and ranchers with Farm Service Agency guaranteed loans. In the letter Roberts said, "This fundamental change in funding runs counter to the purpose of the program and would force dramatically higher costs on the farmers and ranchers for whom it is intended to benefit. Congress never intended this program to be supported solely through user fees." The FSA guaranteed loan programs serve farmers and ranchers who may have some weakness in their financial profile. These farmers may include those who have suffered a year or more of drought or disaster or to assist a younger generation farmer just getting started. "The purpose of the guaranteed loan program is to facilitate the delivery of credit to these borrowers, not drive up their costs," Roberts said. "America's farmers and ranchers, already facing record costs for fuel and fertilizer, should not be forced to pay new user fees to USDA. Furthermore, the fees proposed by USDA are especially burdensome, in some cases, more than four or five times what they are today." The FSA guaranteed loan program leverages a modest federal investment to support a large volume of loans, roughly $2.2 billion in Fiscal Year 2005. The loan program has experienced very low loan losses, just 0.2 percent for guaranteed farm ownership loans and 0.8 percent for guaranteed farm operating loans in Fiscal Year 2005. Roberts went on to say, "These figures compare favorably to non-guaranteed loans made by private sector lenders. In light of the fact that these guaranteed loans are made to farmers and ranchers who might not otherwise qualify for credit, this program should continue without imposing new user fees." Roberts is a senior member of the Senate Committee on Agriculture, Nutrition and Forestry. Date: 8/24/06
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