Socially disadvantaged limited-resource agricultural producers and rural youth face numerous challenges obtaining financial resources through commercial lending institutions because of the risk involved in farming and ranching. Another barrier is that the local banks are unwilling to lend during these times of economic uncertainty. Many of the local producers qualify for financing through USDA’s Farm Service Agency but are not aware of their programs. Therefore, a program was designed to enhance the business management and marketing skills of agricultural producers by engaging them in outreach community classes and workshops hosted by the Cooperative Extension Program.
Under the leadership of Vidal Saenz, Agriculture and Natural Resources Extension Agent, the Cooperative Extension Program provided outreach on the agency’s loan programs and offered support in financial planning and management to agricultural producers in Starr, Hidalgo, Cameron, Willacy, Brooks, and Zapata Counties. Bilingual workshops and one-on-one consultations provided support for producers to complete the loan application process. Targeted clientele learned how to keep and improve production and financial records and generate personal and farm financial statements for their use in financial resource acquisition. Other informal events were offered such as livestock production, crop production, financial management, and marketing. Participants were also informed of additional USDA programs relative to agricultural commodities and sustainability.
Seventy-eight program participants submitted complete, direct loan applications to the USDA’s Farm Service Agency in 2017. These loans were for farm operations, farm ownership, microloans, and youth agriculture projects. Successful applicants were able to purchase livestock, farm equipment, and land. Some recipients were able to re-finance existing debt at discount interest rates. All of the obstacles that impeded their full participation in the program were removed. They were also able to save a 2% fee on their loan requests by not utilizing the services of a private loan consultant. The total money requested for 2017 amounted to $5,131,250. When multiplied by 2%, that brings the total to $102,625, which is the amount that an independent loan consultant would have charged. Each of the seventy-eight participants received an average saving of $1,315.70.
This work was supported by the USDA National Institute of Food and Agriculture, 1890 Extension Formula Program projects under Section 1444.
Mr. Leoncio Salinas – Mr. Salinas was forced to sell his cattle due to previous droughts that impacted Starr County. Extension Agent – Vidal Saenz provided technical assistance to Mr. Salinas in completing the USDA Microloan from the Farm Service Agency. Mr. Salinas received the loan and was able to purchase cattle to restock his pastures. The recommendations that Mr. Salinas adopted for fly control and mineral supplementation was observed by his healthy herd. He is a model rancher in the Rio Grande Valley.
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Vidal H. Saenz