The U.S. Senate democrats have requested that the Department of Agriculture explain why billionaire Elon Musk’s Department of Government Efficiency must approve some government agricultural loans and loan guarantees before they are provided.
According to the letter seen by Reuters, the legislators also told USDA they needed specifics about how such assessments are being handled and whether DOGE will scrutinise other USDA agriculture support programs.
Farmers rely heavily on loans to pay for operational expenses, such as seeds, fertilisers, and pesticides, or to buy land. The USDA’s Farm Service Agency (FSA) typically offers loans to farmers who have trouble accessing credit through traditional lending institutions.
According to an aide, the letter, led by U.S. Sen. Amy Klobuchar, was sent late Tuesday to Agriculture Secretary Brooke Rollins. It was signed by 16 senators, including Ron Wyden, Adam Schiff, and others.
The letter comes after Reuters reported an April 29 memo outlining policy changes related to USDA FSA farm loan programs. According to the memo, the new policy requires that farm loans and loan guarantees over $500,000 must be reviewed and cleared by the agency’s chief financial officer and DOGE employees.
The same applies to loans and guarantees of any size issued to so-called “formal entities”, such as a small farm business limited liability corporation. According to the memo, the policy change complies with an executive order on government cost efficiency.
“Because most farming operations are structured as some type of entity, this requirement could impact a large number of loans and loan guarantees,” according to the letter sent to Rollins on Tuesday.
In addition to posing privacy issues, the MPs stated that the shift would result in delays and financial uncertainties for eligible borrowers.
USDA officials were not immediately available for comment late Tuesday, May 6th. The agency has told Reuters that such reviews do not cause undue delay and that most direct aid to individuals is exempt from the process.
Schiff is a member of the Senate Agriculture Committee, where Klobuchar is the leading Democrat. On the Senate Finance Committee, Wyden is the leading Democrat.
Source: Reuters
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