All loans and guarantees of $500,000 or more will need to be approved by DOGE.A
WASHINGTON, April 30 (Reuters) - Farm loan employees at the U.S. Department of Agriculture’s Farm Service Agency will now need approval from the Department of Government Efficiency (DOGE) to issue loans over $500,000, according to a memo seen by Reuters on Wednesday.
DOGE has led President Donald Trump’s effort to slash the federal workforce and cut spending. Several programs for farmers, such as for local food purchasing and climate-smart farming, have been frozen or cut in the administration’s first 100 days.
Farmers rely heavily on loans to pay for operational expenses including seeds, fertilizers and pesticides, or to buy land. The USDA typically offers loans to farmers who have trouble accessing credit through traditional lending institutions.
The April 29 memo sent by Houston Bruck, deputy administrator for farm loan programs, said that the new policy requiring clearance from the Office of the Secretary and DOGE for some lending is in compliance with an executive order on government cost efficiency.
Under the policy, which went into effect on Wednesday, all loans and guarantees of $500,000 or more and to “formal entities” like corporations will need to be approved by the two offices, the memo said.
Direct farm loans made to farmers by the FSA have a borrowing cap of $600,000. Guaranteed farm loans, which are financed by commercial banks with FSA backing, are capped at $2.2 million.
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