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Posted at: 05/26/2009 10:55 PM Government Out of Loan Money for Farmers(ABC 6 NEWS) -- Most farmers depend on loans to fund their operations; they borrow money in the spring, and then pay it back in the fall. But some farmers who've been approved for federal loans are finding that the well has run dry and the money's not there. Long time Spring Valley farmer Royal Dempewolf was approved for a $185,000 loan through the federal government's farm service agency loan program, but just days before planting his crop he was told there was no money. "I was ready I had a lot of the tillage work already done, ready basically to start planting when he said funding wasn't available." Dempewolf says it's too late to get loans from banks. "How the government can run out of funding when they're having all these programs out there to help the banks and the car dealers." Meredith Salsbery from Congressman Tim Walz' office says the Government re-directed money from other programs into the FSA program, and that President Obama's American Recovery and Reinvestment act allocated more money for the program. But still, the money ran out. "They've spent through all that - part of that is because they've increased the loan limit - meaning farmers can take out larger loans - which decreases supply, and the other part of that is that other credit markets which typically would have went to farmers have dried up in the bad economy and so many more farmers are relying on FSA. As for Dempewolf, he's leased out his land to other farmers. He says he may get a second job to raise some cash to pay his farm bills and he doesn't know if he'll be able to farm next year.
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