Which document confirms the Government's commitment in a loan transaction?

The correct choice is the Loan Guarantee, as it represents an assurance from the government to cover specific loan payments if the borrower defaults. This document plays a crucial role in enhancing the lender's security regarding the repayment of the loan, as it shifts some of the risk away from the lender and onto the government.

In many farm loan scenarios, especially those involving programs provided by the USDA or other governmental bodies, loan guarantees are often utilized to encourage lending to borrowers who may not otherwise qualify for traditional loans. The guarantee assures the lender that, should the borrower fail to meet their repayment obligations, the government will honor the commitment by paying back a portion or the entirety of the outstanding loan. This not only instills confidence in the lending institution but also facilitates access to capital for farmers, thereby supporting agricultural operations.

Other options like the Loan Agreement, Lender's Agreement, and Conditional Commitment pertain to the specific terms of the loan, the relationship between the lender and the borrower, or preliminary stages of financing, respectively. However, they do not provide the same level of security and assurance regarding the government’s financial backing as the Loan Guarantee does.