The U.S. Department of Agriculture provides subsidized credit to high-risk farm borrowers unable to obtain credit from commercial sources. To boost incomes and to relieve financial stress, Farm Service Agency programs can provide additional interest rate subsidies to borrowers. However, when...

Government programs to assist beginning farmers enjoy strong political support. Current Federal programs use credit enhancements to help beginning farmers purchase commercial farms; but higher debt loads increase financial risk. Future Federal policy may need to go beyond traditional credit...