:max_bytes(150000):strip_icc()/13973276071_5d61aaebbc_o-07153824be3147608b38c3330da5b4f8.jpeg "Kansas State University Ag Research Lab Only One to Get Nod From Feds to Continue Work")
Farm Service Agency staff at the U.S. Department of Agriculture must now get approval from the Department of Government Efficiency (DOGE), led by Elon Musk, before issuing any farm loans exceeding $500,000, according to an internal memo obtained by Reuters.
DOGE is at the forefront of President Donald Trump’s efforts to reduce federal spending and streamline government operations. Within the administration’s first 100 days, several agriculture-related initiatives — including programs supporting local food systems and climate-smart agriculture — have been paused or eliminated.
The memo, dated April 29 and signed by Houston Bruck, deputy administrator for FSA’s loan programs, explained that the new policy aligns with a recent executive order aimed at cutting costs in government.
The guidance, effective immediately, requires any loans or guarantees of $500,000 or more made to formal business entities such as corporations to be reviewed by both the the USDA Secretary’s Office and DOGE.
FSA loan programs are often a vital source of credit for farmers unable to secure financing from traditional lenders. These funds typically cover operational needs like seeds, fertilizer, equipment, or land. The borrowing cap for direct loans stands at $600,000, while guarantees through commercial banks can go up to $2.2 million.
“We recognize the potential impact that this effort may have on our customers, lending partners, and FSA staff, and are committed to ensuring minimal disruption to service delivery,” said USDA FSA administrator Bill Beam in a note that accompanied the memo.
According to the USDA, the added review is not expected to significantly delay processing and most direct payments to individuals are not subject to the policy.
“The USDA Efficiency Team reviews many loans, guarantees, and payments,” the agency stated. “The team does assess payments over $500k for fraud and national security concerns.”
Reuters indicated that requests for comment from the American Bankers Association and officials with the Farm Credit System were not immediately returned.
:max_bytes(150000):strip_icc()/MoneyInCornEar-CloseUP-2000-f456e86b83154a8b8082d8f92eba830d.jpg "Markets Start Green in Grains")
:max_bytes(150000):strip_icc()/10_22_18_RohrbachGrasslands_210-2-2000-c58c67cde7174d6e8bce89771cf5917d.jpg "Revised Estimates of Total Crop Acres for the U.S. Over 1998-2025")
:max_bytes(150000):strip_icc()/maudes-287fbed5afb9443b96b62aa951a6ad67.png "Fate of Public Land Dispute Remains Unclear as Politicians Cheer Dismissal of Ranchers’ Charges")