Stabenow urges bankers to consider dairy payments as collateral |

Stabenow urges bankers to consider dairy payments as collateral

Senate Agriculture Committee ranking member Debbie Stabenow, D-Mich., wrote financial regulators on Thursday asking them to consider expected payments under the new dairy program when making loans to dairy farmers, even though the government shutdown has delayed operation of that program.

Agriculture Deputy Secretary Steve Censky said this week that eligibility for the program will be retroactive to Jan. 1.

In a news release, Stabenow noted that, due to low farm income, more than half of bankers have increased collateral requirements for farm loans.

Because important USDA implementation resources and decision tools were delayed during the government shutdown, dairy farmers and their lenders might not fully account for the benefits they will receive under the new dairy safety net, which could require farmers to provide more collateral, pay a higher interest rate, or be denied altogether, Stabenow said.

Support Local Journalism

“It is impossible to predict how markets will look throughout 2019, but it is crucial for dairy farmers and their lenders to understand the new dairy safety net as they discuss financing for the years ahead,” wrote Stabenow.

“I am encouraging lenders to take a close look at and take into account the improved safety net as they work with dairy farmers to understand cash flow for their operations and what options are newly available — even though they have been delayed due to the shutdown.”

Support Local Journalism

Readers like you make the Fence Post’s work possible. Your financial contribution supports our efforts to deliver quality, locally relevant journalism.

Now more than ever, your support is critical to help us keep our community informed about the evolving coronavirus pandemic and the impact it is having locally. Every contribution, however large or small, will make a difference.

Each donation will be used exclusively for the development and creation of increased news coverage.


Start a dialogue, stay on topic and be civil.
If you don't follow the rules, your comment may be deleted.