Malcolm: FSA Loans Can Help When Money Is Tight

Will it be a little tougher to get operating capital this spring?  For some the answer is yes.


“And I think it will be instead of a $150,000 operating line, it might be $110,000 or $100,000 operating line,” said Montana Banker Heather Malcolm.  “So, it might not be at the same level, as historically, but there still is that Ag financing out there available.”


What are farmers to do?


Financial experts say one of the most important thing for farmers is to control operating expenses, know those input costs and understand where all expenses are going.  Malcolm added in a soft farm economy like this, tools are available to help farmers.


“Farmer Mac programs as well as the FSA loan guarantee program are extremely helpful for an Ag banker like myself,” she added.  “Our bank is a small bank in Montana, we’re a $155 million bank, so, by using FSA guarantees as well as the Farmer Mac program, we can help more producers stay in business.”


The American Bankers Association successfully lobbied for more FSA loan program money in the 2018 Farm Bill, but a few questions still remain, such as ensured funding from Congress.  Malcolm is the chair of the ABA’s Ag and Rural Bankers Committee.



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