WASHINGTON, D.C. — Acting USDA Secretary Chuck Conner has announced the forms and rules for the agency’s farm loan programs will be modernized by Jan. 1, 2008, in an effort to make it easier for America’s farmers, ranchers and producers to apply for loans. This is the largest such initiative in the 60-year history of the programs.

“This streamlining initiative is part of a historic transformation in agriculture farm lending programs,” said Conner. “By making our processes simpler and more straightforward, we will more efficiently serve America’s farmers and ranchers. We incorporated about 1,500 comments from nearly 600 members of the public in making these changes.”

During the past few years, USDA’s Farm Service Agency (FSA) has streamlined specific areas of its farm loan programs – such as the Guaranteed and Emergency Loan programs – by revising loan-making and servicing requirements and procedures to better serve applicants and borrowers.

Direct Loans Programs streamlining includes reducing the number of pages in the Code of Federal Regulations necessary to administer the programs by more than 80 percent, modifying requirements to more closely conform to those used by other lenders and ensuring all forms are available online.

Additional streamlining will include cutting nearly in half the number of forms required and making guidance more manageable by replacing nearly 40 instruction manuals with six handbooks.

The program rules and forms will officially change on Dec. 31, 2007. This will allow employees of the FSA, which administers the program, time for nationwide training on the new forms and rules. Until then, FSA will follow current procedures.

FSA makes direct and guaranteed farm ownership and operating loans to family farmers who cannot obtain commercial credit from a bank, Farm Credit institution or other lenders. FSA loans can be used to purchase land, livestock, equipment, feed, seed and supplies, as well as to construct buildings or make farm improvements.

FSA loans are often provided to beginning farmers who cannot qualify for conventional loans because they have insufficient financial resources.

FSA also assists established farmers who have suffered financial setbacks from natural disasters or whose resources are too limited to maintain profitable farming operations.

More information and many of the loan forms needed for the application process are available at local FSA offices and online at www.fsa.usda.gov by clicking on “Farm Loan Programs.”

The streamlining rule can be viewed via the Federal Register at www.access.gpo. gov/su_docs/fedreg/frcont07.html