Explaining county‐level variability in farm service agency farm loan programs Available to Purchase

USDA direct and guaranteed farm loan programs exhibit significant geographical variation in lending activity. County‐level estimations made using Tobit procedures indicate that use of Farm Service Agency (FSA) farm loan programs is greater in counties with lower per capita income and regions experiencing greater farm financial stress. Use of direct FSA loan programs was lower in counties with fewer private‐sector lenders. Guarantee loan program usage was found to decline when commercial agricultural lenders are absent from the county. FSA loan programs were more highly utilized in counties with an FSA loan service center and in states receiving greater FSA farm loan funding in past years.