Small Business Administration Agricultural and Agriculture-Related Lending and Its Relationship to The Farm Loan Programs of USDA's Farm Service Agency

Jerome M. Stam, George B. Wallace and Steven R. Koenig

No 278823, Staff Reports from United States Department of Agriculture, Economic Research Service

Abstract: The Small Business Administration (SBA) has made agricultural and agriculture-related loans since soon after its founding in 1953, although agriculture is a very small part of its focus. At the end of fiscal 1996, $1.3 billion in SBA agricultural and agriculture-related direct and guaranteed loans were outstanding. This accounted for 4.3 percent of all outstanding SBA direct and guaranteed loans on that date. During 1954-96, SBA made 115,327 direct and guaranteed agricultural and agriculture-related loans totaling $7.7 billion with an average loan size of $67,042. These included loans made for (1) crop and livestock production and for (2) agricultural services (soil preparation, crop-related, veterinary, animal services except veterinary, farm labor and management, and landscape and horticultural). The loans were for business uses, with the disaster relief portion composing about three-fifths of the dollar volume. SBA agricultural and agriculture-related lending activity has varied considerably through the years; 79.8 percent of the loans and 61.4 percent of the dollar volume for the 1954-96 period occurred during 1978-81. In 1986, SBA stopped making disaster business loans to farm enterprises for crop or livestock production.

Keywords: Agricultural and Food Policy; Agricultural Finance (search for similar items in EconPapers)
Pages: 35
Date: 1997-07
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Persistent link: https://EconPapers.repec.org/RePEc:ags:uerssr:278823

DOI: 10.22004/ag.econ.278823

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