On April 28, 2026, the Department of Agriculture's Farm Service Agency (FSA) published a notice in the Federal Register, signaling a significant adjustment to its information collection requirements for the Guaranteed Farm Loan Program. The agency is soliciting public comments on a revised information collection request, a procedural step mandated by the Paperwork Reduction Act. This move reflects a substantial reduction in the administrative burden associated with the program, directly linked to a downturn in agricultural lending activity over recent fiscal years. Interested parties have until June 29, 2026, to submit their feedback.
The Guaranteed Farm Loan Program's Role
The FSA's Guaranteed Farm Loan Program is a critical federal initiative designed to support farmers and ranchers who face difficulties securing credit from conventional lending institutions. Under this program, the FSA provides guarantees to commercial and non-traditional lenders, mitigating risk and enabling these financial entities to extend loans to eligible agricultural producers. The collection of specific financial and operational data from applicants and participating lenders is essential for the FSA to effectively administer these guarantees, ensure compliance with statutory requirements, and protect the government's financial interests throughout the loan lifecycle. This information collection is consistent with standard lending practices and is governed by regulations outlined in 7 CFR part 762.
Significant Reduction in Administrative Burden
The core of this Federal Register notice is the FSA's proposal to extend and revise its currently approved information collection, identified by OMB Control Number 0560-0155. The most notable change is a substantial decrease in the estimated annual burden on respondents. The FSA reports a reduction of 29,320 burden hours, bringing the new total to 125,311 hours annually. Concurrently, the estimated total annual responses have decreased to 97,897.
This reduction is not arbitrary but is directly attributed to a significant decline in the volume of guaranteed loans. Between fiscal years 2023 and 2025, the number of new guaranteed loans originated fell. More broadly, from fiscal year 2022 to fiscal year 2025, the total number of outstanding guaranteed loans administered by the FSA decreased by 31 percent, dropping from 52,490 to 35,984. The agency also noted a lower number of loss claims and default status reports received compared to fiscal year 2022, further contributing to the reduced administrative workload. These figures suggest a contraction in the demand for or availability of federally guaranteed farm loans, or potentially a healthier financial position for existing borrowers.
Implications for Agricultural Lending
The reported decrease in guaranteed loan activity presents a complex picture for the agricultural sector and its financial health. A 31 percent drop in outstanding loans over three years indicates a notable shift in the landscape of farm financing. This could stem from a variety of macroeconomic and industry-specific factors, including fluctuating commodity prices, changes in farm income, prevailing interest rates, or an evolving risk appetite among both traditional and non-traditional lenders. It might also suggest a greater reliance on conventional, non-guaranteed loans, or even improved financial resilience among a segment of agricultural producers. While a reduction in loss claims could be interpreted as a sign of improved financial stability among the remaining borrowers, the overall decline in loan volume warrants closer examination by economists and policymakers to understand its root causes and potential long-term effects on farmer access to essential capital. For lenders participating in the program, the reduced number of responses per respondent and the overall decrease in burden hours represent a tangible simplification of their administrative duties, potentially making the program more efficient for those who continue to utilize it. However, the underlying reasons for the decreased program utilization remain a key area for inquiry.
Public Comment Period Underway
The FSA is actively seeking public comments on several critical aspects of this information collection. Specifically, the agency invites feedback to evaluate the necessity and practical utility of the information, assess the accuracy of its burden estimates and methodologies, suggest ways to enhance the quality and clarity of the information collected, and identify methods to minimize the burden on respondents. This includes exploring appropriate automated, electronic, or other technological collection techniques. All comments submitted will become part of the public record and will be considered during the agency's submission for Office of Management and Budget approval.
The notice also reiterates the USDA's comprehensive non-discrimination policy, assuring stakeholders that its programs are administered without prejudice based on a range of protected characteristics. This reinforces the agency's commitment to equitable access to its services, including the Guaranteed Farm Loan Program.
