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Farm Loan Programs

Farm Loan Programs. Bill Cobb, Deputy Administrator June 25, 2019. Funding. Funding (Continued). Microloan Obligations. Funding (Continued) Direct Farm Ownership Loans. 1/4 of FY 2019 remaining - 1/3 of direct FO funds remain unobligated.

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Farm Loan Programs

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  1. Farm Loan Programs Bill Cobb, Deputy Administrator June 25, 2019

  2. Funding

  3. Funding (Continued) Microloan Obligations

  4. Funding (Continued)Direct Farm Ownership Loans • 1/4 of FY 2019 remaining - 1/3 of direct FO funds remain unobligated. • Direct FO applications received through May 31, 2019, were 2 percent higher than FY 2018 at the same time. • Number of loans obligated to date are equal to a year ago at this time. Obligations are 16 percent higher. • Average size loan FY 2019 to date = $213,000. Average size loan in FY 2018 = $183,000. • Comparing June FY 2019 to June FY 2018: • Average size loan for June 2019 is $244,000. • Average loan size in June 2018 was $188,000.

  5. Funding (Continued)PLCE “A”Funds • Current National Reserve balance: $1.48 million • Funds Use: October 2018 – June 20, 2019 • $5,910,037 (total usage of Program account funds) • $5,746,407 (Real estate and chattel appraisals) representing 4,430 appraisals • $163,630  (Uses other than appraisals) • FY 2019 State allocations represented 95 percent of FY 2018 obligations.

  6. Funding (Continued)PLCE “A”Funds

  7. Funding (Continued)PLCE “A”Funds

  8. FLP Goals FY 2019: • Prior to the shutdown, identified modifications to existing goals based on workload and staffing. • Lapse in funding delayed issuance of guidance and created additional challenges in meeting goals. • USDA selected three FLP goals for Key Performance indicators for the Quarterly Strategic Review (QSR) • Average number of days to process direct loans • Percentage of direct and guaranteed loan borrowers who are beginning farmers (53) • First year delinquency rate on new direct loans (10) • The Department reduced the average number of days to process direct loans from the recommended 33 days to 30 days.

  9. FLP Goals (Continued) Number of States Not Meeting 2019 Goals • First Year Delinquency Rate On New Loans – 15 • Goal 10% - National Average 7.3 % • Average Processing Time Direct Loans – 23 • Goal 32 days – National Average 31 days • Average Processing Time Guaranteed Loans – 21 • Goal 11 days – National Average 12 days • Lending to Beginning Farmers – 22 • Goal – 43% - National Average 55.7%

  10. FLP Goals (Continued) Number of States Not Meeting 2019 Goals (Continued) • Lending to SDA – 22 • Goal 19% - National Average 20.9 % • Direct Delinquency Rate – 18 • Goal 8.5% – National Average 5.2% • Guaranteed Delinquency Rate – 17 • Goal 2.0% – National Average 1.67% • Special Servicing Processing Time – 32 • Goal – 85% - National Average 78%

  11. FLP Goals (Continued) 2020 Goals • FLP goals were last updated in 2012 using data from 2009-2011 as a benchmark.  • Goals for FY 2012-FY 2016 were established in a DAFLP/DAFO memo dated December 22, 2011. • FY 2016 goals were extended for FY 2017 and FY 2018 • DAFLP is establishing a taskforce to address and develop new FLP goals for FY2020 and beyond.  • Meeting in Washington DC, June 26-27, 2019 • James Welborn (TN), Brian Gossling (IA), LaDonna Hupp (SD), Dave Lavway (ME) – Houston Bruck is the FLP lead.

  12. DAFLP Staffing

  13. DAFLP Staffing (Continued)

  14. DAFLP Staffing (Continued) • DAFLP • Current Ceiling – 63 FTE’s • 14 Vacant FTE’s • FSA State Appraisers • Current Ceiling – 33 FTE’s • 8 Vacant Positions • Appraisers are scheduled to be transferred to DAFLP/POAD/AB in PP 13

  15. DAFLP Staffing (Continued) Vacancy Priorities – In Process: • Deputy Director, LSPMD (GS-14) • Branch Chief, Guaranteed Loan Making, LMD (GS-13/14) • Program Analyst, LMD and LSPMD (GS-7/9) • Senior Loan Officers, LMD (GS-9/11/12/13) • Multiple Positions, including DLS Coordinator • Above positions are DC based.

  16. DAFLP Staffing (Continued) Future Positions: • Assistant Deputy Administrator • Assistant to the Director, LMD and POAD (GS-14) • Lead Regional Appraiser – West Region (GS-13) • Regional Appraiser – West Region (GS-13) • FBP Coordinator (Up to GS-13) – Considering remote location • Senior Loan Officers (Up to GS-13) • Appraisers (GS-12) • Not listed in order of priority.

  17. What’s in the Future? • FLP Policy/Training Meeting • Tentatively the week of September 8 • May be combined with FSFL, Stressed Farmer, and Outreach • Work Not Completed Task Force • Meeting in Washington DC July 23-25, 2019 • Reviewing linkage to optimal office and staffing model • Includes Rebecca Padilla (NM) and Nancy Reiff (IN)

  18. What’s in the Future? (Continued) • Farmers.gov • Farm Loan Discovery Tool • Assists farmers in finding the loan that fits their operation • Can download quick guides and application forms • Testing June 26 - Release July 3 • Loan View • Improved view on mobile devices • Print interest statement • Release July 18, 2019

  19. What’s in the Future? (Continued) • FLOT Trainer • Updated Guide and webinar • Pilot completed by Gretchen Thomas and Kim Paulson (ND) in Virginia State Office on June 20 • Webinars starting monthly in October • PT Training • Felicia Schulte (MI) • On-line “How To” courses – Releases begining by the end of the FY • CE • Kim Paulson • Variety of courses starting this FY – Interactive on-line and webinars • CFAT • Plan to replace the current case study • Expand guidance on ratios

  20. What’s in the Future? (Continued) • FBP Release 17.32 • No Major changes, but new look and feel – email through DAFO today • Targeted for release – June 28, 2019 – FBP will be unavailable. • Revised Coordinator’s and User’s Guides • https://inside.fsa.usda.gov/program-areas/daflp/software-manuals/index • Exhibit 15 to 1-FLP will be eliminated • Training • “FBP Lending Cloud New Features and Enhancements” • Updated 11 FBP-related training modules • http://help.onlinequity.com/Tutorial-Webinars/FSA_Recording.htm • There is a known alignment issue when creating a Security Agreement in a credit action.

  21. What’s in the Future? (Continued) • Subparagraph 29 D of 1-FLP – Maximum Loan Approval Authority • Concerns with the new example added with Amendment 181 on May 17, 2019 • Considering alternatives to minimize actions needing State Office approval. • Stressed Farmer Training • AS-2328, Lifting the General Records Freeze and Disposal of FLP Records • June 7, 2019, email through DAFO advised that more than the borrower’s name is needed for Civil Rights to verify there is no open complaint. • Guidance forthcoming on how to obtain a list of direct and guaranteed customers (names and addresses) that no longer have active loans from National Office – email through DAFO being sent today.

  22. What’s in the Future? (Continued) • Internal Controls • DDORS – Review just conducted by fellow (Callie Erickson, IA) • Survey on contents and frequency (75 FLC’s, DD’s, FLM/FLO’s, and PT’s • Will coordinate further FLP internal review actions with Perry Thompson and FPAC/PAR.

  23. What’s in the Future? (Continued) • Farm Bill Regulations • Direct and Guaranteed Loan Changes, Mediation Program • Changes other than equitable relief have already been implemented through a notice of handbook amendment • Also includes: • Elimination of cash collections • Dishonored check fees • Lack of good faith determination by OGC • Target for publication summer 2019 • Relending Program • Targeted for publication early 2020 • Hemp – AMS rule targeted for 2020 planting season • 7 CFR Part 3 – Debt settlement and offset

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