loans

Reporting from Washington — A bank has seized a Tulare County dairy farm owned by Rep. David Valadao and his family to resolve more than $8 million in loans that have not been repaid, according to court documents.

In November, agriculture lender Rabobank sued Triple V Dairy in Fresno County Superior Court alleging failure to repay loans for cattle and feed totaling about $8.3 million. The Republican congressman is named in the suit along with his wife, four other family members, two other farms and 50 unnamed defendants. Also listed in the suit is a separate farm owned by the family, Lone Star Dairy, in which the congressman has no stake.

Both sides agreed March 28 to hand control of the farm over to the bank until it is sold. The bank appointed a local business owner to oversee the daily operations of the farm and began to sell off livestock and farming equipment to settle the debt.

“Like so many family dairy farms across the country, burdensome government regulations made it impossible for the operation to remain open,” Valadao said in a statement. “While this has been an especially difficult experience, I remain hopeful that sharing my story will help those going through similar situations.”

The next court session in the case is scheduled for July 16.

House rules prohibit Valadao from having an active role in the day-to-day operations of the farm, which was largely managed by his brothers. Valadao lives near Hanford on the property of Valadao Dairy, which is managed by his father and is not involved in the lawsuit.

According to the California Department of Food and Agriculture’s annual summaries, almost 36% of dairy farms in California shut down between 2001 and 2017. In the last five years, at least 50 dairies in Fresno, Kern, Kings and Tulare counties have closed.

Valadao grew up in the dairy business and in 1992 became a partner in the family’s Central Valley dairy. Working on local agricultural interests through the California Milk Advisory Board and the Western States Dairy Trade Assn. spurred an interest in politics, and Valadao was elected to Congress after serving in the state Assembly.

Valadao’s stake in the Triple V and Valadao dairies has consistently made him one of the poorest members of Congress. According to his annual financial disclosure report, Valadao’s stake in each dairy is worth between $1 million and $5 million, but lines of credit against the farms and equipment give him an estimated net worth of negative $17.5 million.

Valadao is currently seeking a fourth term representing the 21st Congressional District, which stretches across rural portions of Fresno, Kings, Tulare and Kern counties.

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sarah.wire@latimes.com

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Dec. 23 (UPI) — The U.S. Department of Education has signaled that next year it will resume garnishing wages of people who’ve defaulted on their student loans.

The change, reported by multiple news outlets, comes after a years-long respite on garnishment that began as a pandemic-era economic relief measure. The resumption follows other Trump administration efforts to recoup past-due student loan debt.

The department intends to notify about 1,000 borrowers who have defaulted on their debt that it will begin seizing parts of their paychecks, The Washington Post reported Monday. The initial notices will go out the week of Jan. 7, with more going out to borrowers each month, according to the paper.

Roughly 5.3 million borrowers have not made student loan payments, with many having fallen behind before the federal government stopped collecting on defaulted loans nearly six years ago, the Post reported.

A borrower is considered to be in default on their loan when they have not made a payment for more than 270 days. Up to 15% of their pay can be garnished as a result.

After returning to power earlier this year, the Trump administration has sought to undo Biden-era policies meant to ease the burden of student loans on borrowers. The department announced in April that it would again require defaulted borrowers to make payments on their loans and has sought to tighten rules for the Public Service Loan Forgiveness program.

The Trump administration has defended its approach, saying it’s holding irresponsible borrowers accountable for loans that have cost taxpayers billions.

However, the Student Borrower Protection Center criticized the department for resuming garnishments, saying the measure is used without oversight and has been used to unjustifiably seize wages from hundreds of millions during the pandemic.

“At a time when families across the country are struggling with stagnant wages and an affordability crisis, this administration’s decision to garnish wages from defaulted student loan borrowers is cruel, unnecessary, and irresponsible,” Persis Yu, the group’s deputy executive director and managing counsel, said in a statement. “As millions of borrowers sit on the precipice of default, this administration is using its self-inflicted limited resources to seize borrowers’ wages instead of defending borrowers’ right to affordable payments.”