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Analysis of Borrower and Lender Use of Interest Assistance on FSA Guaranteed Farm Loans

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  • Ahrendsen, Bruce L.
  • Koenig, Steven R.
  • Dixon, Bruce L.
  • Dodson, Charles B.
  • Settlage, Latisha A.

Abstract

The Farm Security and Rural Investment Act of 2002 made permanent the interest assistance program for the Farm Service Agency's guaranteed loans, authorized a significant increase in funding for the program, and targeted funding for beginning farmers and ranchers. The research presented here provides a basic descriptive analysis of past use. In particular, borrower data for Federal fiscal years 1985 through 2002 are examined in several dimensions. These dimensions include geographic, borrower type, lender type, interest rate differentials, percent guarantee, and the status of the loan as to whether a loss claim was paid or the loan remained active. Even though the program has been in existence for more than 15 years, little is known about its impact and utilization. This research is an initial step in documenting usage of the program.
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Suggested Citation

  • Ahrendsen, Bruce L. & Koenig, Steven R. & Dixon, Bruce L. & Dodson, Charles B. & Settlage, Latisha A., 2003. "Analysis of Borrower and Lender Use of Interest Assistance on FSA Guaranteed Farm Loans," 2003 Regional Committee NCT-194, October 6-7, 2003; Kansas City, Missouri 132392, Regional Research Committee NC-1014: Agricultural and Rural Finance Markets in Transition.
    • Handle: RePEc:ags:nc2003:132392
    DOI: 10.22004/ag.econ.132392
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    Keywords

    Agricultural Finance;

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