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USDA provides relief for financially distressed farm loan borrowers

The U.S. Department of Agriculture has announced financial assistance to help qualified farmers who are struggling to make payments on their USDA loans keep farming.

Ag Secretary Tom Vilsack says work has already started to bring relief to more than 13,000 farmers.  “The first order of business was to bring those folks current,” he says.  “To utilize roughly $600 million dollars of the $3.1 billion, to make payments in essence, how to bring those borrowers current, and to the extent that they have a direct loan with USDA to also provide them on additional annual payment.”  In addition, debt has been resolved for more than 2,000 borrowers with foreclosed farms.

USDA has also outlined steps for an additional $500 million in payments to benefit other groups of distressed farmers and ranchers. “Roughly 1,600 borrowers who are 60 days or more delinquent, but who are now engaged in a bit more complicated circumstances,” he says.  “Either they’re in bankruptcy or they were already in foreclosure at the time the moratorium went into place.”

Deputy Undersecretary Dr. Jewel Bronaugh says this is the USDA’s first step in its relief efforts.  “In future phases of this effort to assist distressed borrowers USDA is going to look for ways to add tools, to add flexibility, to intervene more quickly,” she says.  “And well before borrowers facing financial hardship become at risk of losing their farm.”

Farm Credit Council president and CEO Todd Van Hoose says Farm Credit is an active partner with USDA on FSA-guaranteed loans, and lenders will work closely with USDA and FSA to ensure the debt relief provides the intended assistance to distressed borrowers. 

A link to more information can be found HERE.