Budget cuts lead to USDA office closures

1/14/2012

The U.S. Department of Agriculture plans to close 260 of its offices nationwide, The Associated Press reports. This may mean some farmers or businesses hoping to apply for a USDA loan at their local office may need to find another one that's nearby.

This is primarily a cost-cutting measure, according to agriculture secretary Tom Vilsack, who pointed out that the USDA has seen a roughly $3 billion reduction in its operating expenses since 2010.

The agency's current budget is $145 billion. Around $90 million had already been saved by reducing travel and expenses, and the closures were implemented to save around $60 million more, equalling the $150 million proposed by the Obama administration.

"The USDA, like families and businesses across the country, cannot continue to operate like we did 50 years ago," Vilsack said, as quoted by the news source. "We must innovate, modernize and be better stewards of the taxpayers' dollars."

Among those offices being shut down are 131 Farm Service Administration offices in 32 states.

Kevin Ross, a sixth-generation farmer in Iowa, expressed his concern to The AP, stating that "access to agencies is a big deal, especially in rural areas … It's easy to say it looks like great cost savings but I hope they are careful and strategic in their decisions."