Home » NEWS » Agribusiness » Senators calling on USDA to explain decisions on assistance loans

Senators calling on USDA to explain decisions on assistance loans

bf524afc612e7aa534d6c543a3d3e144WASHINGTON, D.C. – U.S. Sen. Thad Cochran (R-Miss.), ranking member of the Senate Agriculture, Nutrition and Forestry Committee, and U.S. Sen. Roger Wicker (R-Miss.) have challenged the U.S. Department of Agriculture to explain what they call recent ill-timed decisions regarding marketing assistance loans that are creating financial uncertainty and hardships for farmers and businesses, including what will amount to a one-month delay in processing loans.

Cochran, along with 13 other senators, wrote a letter to Agriculture Secretary Tom Vilsack that requests explanations for the Sept. 30 decision to apply a 5.1 percent sequester on marketing assistance loans made after Oct. 1, which could result in price reductions for peanut and cotton yields. The letter also asks the USDA to explain the rationale behind the timing of the loan processing delay.

“Marketing assistance loans represent a financial tool used by our peanut and cotton producers to market their crops and maintain stable farm operations. Secretary Vilsack should explain why it USDA has disrupted the use of these assets during harvest season and, ideally, take corrective actions,” said Cochran, who spearheaded the letter.

“Changing the rules in the middle of the game is unfair to our nation’s food producers, particularly during harvest season,” Wicker said.

The 14-day loan processing delay to allow for software updates was scheduled to begin Oct. 1 but was further delayed during the 16-day partial government shutdown. The USDA indicated during the shutdown that the 14-day software upgrade would commence when the government reopened.

“The decision to apply sequestration and delay loan processing just as harvest across much of the Sunbelt is gearing up is particularly damaging because it was made without warning,” the senators wrote. “This means growers, marketing cooperatives, private merchandizing firms, and agribusinesses were unable to make alternative plans to mitigate the financial hardship imposed by the decisions.

“We call to your attention our constituents’ concerns about the lack of details and transparency in the USDA’s last-minute announcement. Most notable is the fact that the news release did not specify whether loan redemptions would also be impacted by sequestration. This will have a direct bearing on how growers, marketing cooperatives, private merchandizing firms, and agribusinesses adjust their current and future marketing strategy.”

In addition to Cochran and Wicker, the letter was signed by Senators Saxby Chambliss (R-Ga.), ranking member on the Agriculture Subcommittee on Commodities, Markets, Trade and Risk Management, John Boozman (R-Ark.), Richard Burr (R-N.C.), John Cornyn (R-Texas), Lindsey Graham (R-S.C.), Kay Hagan (D-N.C.), James Inhofe (R-Okla.), Johnny Isakson (R-Ga.), Mary Landrieu (D-La.), Mark Pryor (D-Ark.), Richard Shelby (R-Ala.) and David Vitter (R-La.).


… we’d like to ask for your support. More people are reading the Mississippi Business Journal than ever before, but advertising revenues for all conventional media are falling fast. Unlike many, we do not use a pay wall, because we want to continue providing Mississippi’s most comprehensive business news each and every day. But that takes time, money and hard work. We do it because it is important to us … and equally important to you, if you value the flow of trustworthy news and information which have always kept America strong and free for more than 200 years.

If those who read our content will help fund it, we can continue to bring you the very best in news and information. Please consider joining us as a valued member, or if you prefer, make a one-time contribution.

Click for more info

About MBJ Staff

One comment

  1. An interesting quote from Y’all Politics:

    Former Billy McCoy VPAC chair and active Democratic strategist Robert Hooks recently posted the comment below on his Facebook:

    “Many Democrats in Mississippi seem to have gotten upset at the prospect of United States Senator Thad Cochran being challenged by State Senator Chris McDaniel. I have read quite a few Democrats saying they would vote in the GOP primary just to support Thad Cochran. Let me put a couple of ideas out there. First, If you are a well known liberal Democrat who wants to see Thad Cochran win in one of the most conservative Democratic-Hating Republican primaries in the nation, perhaps filling Facebook up with how much you are in love with him actually does not help his cause… Perhaps we should all wait a little while. Talk privately, and see if there is maybe a more ambitious option we could choose.”


    Why, do you suppose, that Mississippi Democrats would support Thad Cochran?

    I have and will SUPPORT State Senator Chris McDaniel. I appose anything that Billy McCoy has anything to do with!

Leave a Reply

Your email address will not be published. Required fields are marked *