USDA Loan Repayment Plan To Be Reviewed
USDA Loan Repayment Plan To Be Reviewed: At two distinct phases, one and all farmer cherish. One of them is reaping good crop and the other, gaining profit during the same process. We are at the impulse of nature to get both quality and quantity of crops, advantage is where we should have a voice. Where there’s no advantage, the family of the farmers will not be able to pay back their loans or take the responsibility of family or even cannot donate to their ring.
The farm bill which is the latest one has now 3 years in hand, the US Congress is going to begin their work for the upcoming bill in the next coming year. In this span of time, the producers of agricultural products should start planning what the customers want and this will be firmly mentioned in the upcoming farm bill. If there is any requirement for increasing the price of grains, they will have to take this request to Congress in order to alter the Agricultural loan policy for crops under US department. An increase in grain will automatically make it obvious that the price will increase for both dairy and meat products.
The proposed fact is that, the repayment of loan funds must be with USDA. The ongoing system channelizes repayment of loan directly in the general fund. Rationally, this loan repayment finance remain with USDA as Congress, every one year for loan programme, allot a budget fixation. Why this is done? The reason is that, this money will get itself increased in time for interest is stockpiled and it need not be addressed in each farm bill. The best part is that, the farmers will depend upon each other as banker along with which, USDA will act as an intermediate option.
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The next proposal is that, the tenure of loan paying back should be expanded. The latest maximum tenure is 9 months. This needs to get doubled. Why double? Because, this doubling will enable the farmers complete their harvesting for the succeeding year. Nowadays, the companies dealing with grains know that the loans are due just advancing of reaping. These people have no stimulus to increase price, that is putting them in such a position where they have a financial power on producers. The multinational companies just need to wait and allow the grain to get in as the farmers will have to pay back the loan.
This extension in the tenure of loan payment will permit the farmers to let them selves wait till the next year’s harvested crop for selling which results in small amount of grain directed in the market in the 1st year of crop harvest. The companies of grain will then get inspired to expend more than loan rate in order to persuade the farmers to sell. As a result, the market will rise upwards and for which there will be more amount of dollar for farmers.
The following one is that the loan deficiency payments need to get abolished. The farmers now, are to accept the said charge a company of grain offers to them, with the back up that they will be receiving subsidies by USDA for the sold grain at that price which is lower than the rate of loan. LDP is the best way to make it sure that the farmers stay in the profit making end. We also need to prepare a formula for the family farms to be in the profit ending side. The producers may receive good and trustworthy buying prices rather than receiving subsidies from government. This will lead to many US taxpayers put in their pockets millions of dollars every year.
Generally, common people do not like corporate welfare. Increase in the interest rates of loan will definitely push the grain companies to pay just prices. Currently, the system is handling the payment of farmers just because the MNCs may not be just while paying to them. These people understand that the politicians are going to bail out the producers. Although, the payments are directed towards farmers, yet the voters takes it as corporate welfare.
The politicians who have permitted this way of paying to the farmers’ families in order to let them grow worst over the years. This system should now have a full stop. The upcoming bill which is to succeed the current one must have in it that legislation which will let the farmers’ family be at a profitable end. As a result of which, the farmers can grow crops that the country is in need of and hence the MNCs make valid payments for the grain.
We have thus discussed how the loan repayment should be reviewed to get the farmers assured of their security. Hoping that it has helped you! Please leave a comment for us in the comment box. Thank you.
Source: USDA Loan Repayment Plan To Be Reviewed
USDA Loan Repayment Plan To Be Reviewed USDA Loan Repayment Plan To Be Reviewed USDA Loan Repayment Plan To Be Reviewed USDA Loan Repayment Plan To Be Reviewed USDA Loan Repayment Plan To Be Reviewed USDA Loan Repayment Plan To Be Reviewed USDA Loan Repayment Plan To Be Reviewed