A more extensive review process for large federal farm loans and guarantees won’t slow approvals, according to the U.S. Department of Agriculture, but not everyone is convinced the additional review is necessary.

National news reports have highlighted a memo within the Farm Service Agency citing a policy change requiring that farm loans and loan guarantees above $500,000 be reviewed and approved by the agency’s chief financial officer and also by the Department of Government Efficiency (DOGE). A number of Senate Democrats signed a letter to the Department of Agriculture, asking for more information about the policy and the review process.

U.S. Sen. John Hoeven’s office issued a statement, saying, “Our office has been in contact with USDA regarding the review of FSA loans, having stressed the need to provide certainty to producers. In conversations with USDA, we have been told this will not slow down loan approvals. We appreciate the careful stewardship of taxpayer dollars, and at the same time, we will continue working for an efficient process for producers.”

Information from FSA shows 76 farm loans of more than $500,000 were made in North Dakota from Jan. 1 to May 7 of this year, totaling more than $68 million. It breaks down as 13 farm ownership loans, $7.35 million; 10 guarantees on farm ownership loans, $9.4 million; and 53 guarantees on operating loans, $51.4 million.

Matt Perdue, government relations director for the North Dakota Farmers Union, said the extra layer of DOGE review adds confusion and bureaucracy rather than streamlines a government program.

“Loans and guaranteed farm loans are obviously a critical resource to farmers and ranchers across the state of North Dakota, especially for our younger, beginning farmers who are trying to get their feet under them in their operation and they struggle to find a good opportunity with commercial lenders. So, I think the extra layer of bureaucracy is one that we’re really concerned about,” Perdue said. “We’re trying to seek clarity from USDA on what this impact will look like and how it will impact processing times and availability of FSA loans.”

While NDFU is unaware of any significant disruptions resulting from the added review, skepticism remains, he said.

“Everybody agrees that we should address any fraud or waste at the federal government level, but how you do that really matters,” Perdue said. “In fact, we do not see high levels of fraud or delinquent loans or anything like that with farm loan programs, so we just think it’s a non-issue. As far as it applies to FSA loans, it seems like a solution in search of a problem.”

Perdue added that local offices are a trusted resource for producers. Local staffs have close relationships with the farmers they serve and do a great job of helping producers understand the best opportunities for their operations, he said.

“The fact that these loans are being handled by local employees, I think, really does address some of the concerns that you may see with other programs,” he said.