Additional financial aid is now available for financially distressed farmers through Farm Service Agency Loan Programs (FSA Loan Programs). The FSA has introduced new measures to support qualifying guaranteed Farm Loan Programs borrowers who are grappling with financial challenges. These measures form part of a $3.1 billion package aimed at aiding distressed farm loan borrowers, provided through the Inflation Reduction Act.
According to Farm Service Agency Administrator Zach Ducheneaux, “Borrowers who were not 60 days behind on their payments as of September 30, 2022, as well as those borrowers whose payments became overdue between September 30 and October 18, 2020, and producers who had loan restructures between March 1, 2020 and August 11, 2023, are eligible to apply for this assistance. Deferred guaranteed loan payment limits have been set at $100,000, with the payment amount being the lesser of the most recent deferral or extension amount or the amount required to settle the account in full.”
This new financial aid is exclusively for FLP guaranteed loan borrowers who did not receive or will not receive an initial payment under the Inflation Reduction Act assistance announced in October 2022 on the same FLP guaranteed loan.
Qualifying distressed borrowers will receive a United States Department of the Treasury check, payable jointly to them and their lender. In addition, the FSA will send them a letter detailing their awards, as well as instructions on setting an appointment with their lender to process the payment and apply it towards their eligible guaranteed loan accounts.
The FSA continues to accept and review requests for assistance from individual distressed borrowers who have recently missed a payment or are unable to meet their upcoming payment deadlines on a qualifying direct FLP loan.
For more information on this subject, visit the USDA FSA website.
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