2014: Schweikert Voted Against Transferring $5.5 Million From The Farm Service Agency To The Food Safety And Inspection Service. In June 2014, Schweikert voted against an amendment to the FY 2015 Agriculture, Rural Development and FDA Appropriations bill that, according to Congressional Quarterly, "would [have] increase[d] by $5.5 million the amount provided by the bill for the Food Safety and Inspection Service and [would have] decrease[d] the amount provided for the Farm Service Agency by the same amount." The House rejected the amendment by a vote of 150 to 272. [House Vote 303, 6/11/14; Congressional Quarterly, 6/11/14; Congressional Actions, H. Amdt. 858; Congressional Actions, H.R. 4800]
CRS: The Farm Service Agency Is Both A "Lender Of Last Resort," Providing Direct Loans And Guarantees For Farmers Unable To Obtain A Loan Commercially; And A "Lender Of First Opportunity," Providing Loans To New And "Socially Disadvantaged" Farmers Not Yet Able To Obtain Business Credit Commercially. According to the Congressional Research Service, "USDA's Farm Service Agency is a lender of last resort because it makes direct farm ownership and operating loans to family-sized farms that are unable to obtain credit elsewhere. FSA also guarantees timely payment of principal and interest on qualified loans made by commercial lenders such as commercial banks and FCS [the Farm Credit System]. [...] Prior to the banking crisis in 2008, FSA usually made and guaranteed about $3.5 billion of farm loans annually. Supplemental appropriations during the financial crisis raised FSA loan activity to about $6.0 billion in FY2010. In FY2012, appropriations supported about $4.8 billion of FSA direct loans and guarantees. Direct loans are limited to $300,000 per borrower, guaranteed loans to $1,302,000 per borrower (adjusted annually for inflation). Direct emergency loans are available for disasters. Part of the FSA loan program is reserved for beginning farmers and ranchers (7 U.S.C. 1994 (b)(2)). For direct loans, 75% of the funding for farm ownership loans and 50% of operating loans are reserved for the first 11 months of the fiscal year. For guaranteed loans, 40% is reserved for ownership loans and farm operating loans for the first half of the fiscal year. Funds are also targeted to 'socially disadvantaged' farmers by race, gender, and ethnicity (7 U.S.C. 2003). Because of these provisions, FSA also is known as lender of first opportunity for borrowers who are not yet creditworthy for regular commercial business loans" (footnotes omitted). [CRS Report #RS21977, 2/7/13]
FSA Administers Multiple Agricultural Conservation Programs, Including The Conservation Reserve Program And The Source Water Protection Plan. According to the Farm Service Agency's website, "The United States Department of Agriculture Farm Service Agency (FSA) oversees a number of voluntary conservation-related programs. These programs work to address a large number of farming and ranching related conservation issues including: Drinking water protection; Reducing soil erosion; Wildlife habitat preservation; Preservation and restoration of forests and wetlands; [and] Aiding farmers whose farms are damaged by natural disasters." Among the programs then listed are "The Conservation Reserve Program (CRP) pays a yearly rental payment in exchange for farmers removing environmentally sensitive land from agricultural production and planting species that will improve environmental quality" and "The Source Water Protection Program (SWPP) is designed to protect surface and ground water used as drinking water by rural residents. The program targets states based on their water quality and population." [Farm Service Agency website, 4/11/14]