Udall, Bennet Join Senate to Approve Critical Support for Colorado Farmers and Ranchers

Press Release

Udall, Bennet Join Senate to Approve Critical Support for Colorado Farmers and Ranchers

Agriculture Appropriations Bill Increases Loan-Aid to Farmers, Funds Critical Research at CSU and Great Plains Research Station in Akron

U.S. Senators Mark Udall and Michael Bennet joined the Senate Tuesday evening to pass a bill that increases access to credit for farmers and ranchers. The Senators were instrumental in ensuring the bill included support for Colorado's farmers, who are struggling as a result of low commodity prices and the credit crunch. The bill also funds important agricultural and public health research programs in Colorado, which the Senators fought to include.

The Senate approved the Fiscal Year 2010 Agriculture, Rural Development, and FDA Appropriations bill, which provides funding for food programs, rural development, and agricultural research. The bill passed with significant bipartisan support, by a vote of 80-17. A final version must now be worked out with the House of Representatives.

A critical provision in the bill increases funding for direct farm operating loans starting in Fiscal Year 2010, which begins on Oct. 1. The provision will be a big help to Colorado farmers and ranchers.

In June, Senators Udall and Bennet wrote a letter to appropriators urging them to increase funding for the program by $124,905,000 - the amount recommended by President Obama in his proposed budget. The additional funding means that approximately $7.8 million in direct farm operating loans would be available for Colorado farmers in FY2010 - an increase of about $1.4 million over last year. Overall, the increase would help an estimated 12,000 more family farms in 49 states.

The Farm Service Agency (FSA) direct farm operating loan program was created to help qualified farmers. Demand for the program has increased dramatically in the last year as a result of the credit freeze and other problems related to the economic crisis. Earlier this year, Congress also heeded another request by the Senators to increase loan funding in the Emergency Supplemental package, which raised the amounts to help meet demand for this Fiscal Year.

"At the beginning of this year, the demand for FSA loans had already skyrocketed by 200 percent over last year, and FSA hasn't been able to keep up," Senator Udall said. "The increased support in this bill will be a huge help for farmers who already qualify for loans but can't get them because of a lack of available credit. I'm very glad our colleagues heeded our call and provided this critical support for farmers and ranchers that will help keep Colorado's farming economy strong."

"Plummeting commodity prices and a crippling shortage of credit have put Colorado's farmers and ranchers in a tough spot," Senator Bennet said. "With demand for FSA loans on the rise, this increase in support will help qualified producers get the credit they need to stay in business and on their farms. With thousands of jobs and hundreds of agricultural operations on the line, we need to do what we can to make sure Colorado's farming and ranching economy stays strong."

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