Paper and electronic versions of new, simplified direct loan applications for producers applying for loans from the Farm Service Agency will be available beginning March 1.
The U.S. Department of Agriculture developed the simplified loan application that’s been reduced from 29 to 13 pages, a Feb. 7 news release reported. The previous paper-based application’s length and complexity caused “a high rate of incomplete or withdrawn applications” from the approximately 26,000 producers who applied annually.
“USDA is committed to improving our farm loan processes to better serve all of our borrowers,” FSA Administrator Zach Ducheneaux said in the release. “We’re consistently looking for ways to make the application process easier to navigate, so more producers are able to complete it. Our new direct loan application is a critical step forward in our efforts to improve customer service and build equity into not just our programs, but also our services.”
The simplified application and the Loan Assistance Tool, a step-by-step guide released in October 2022, should help in the application process, the release said. The Loan Assistance Tool can run on modern browsers, and a version for mobile devices is scheduled to be available by summer.
“USDA provides access to credit to approximately 115,000 producers who cannot obtain sufficient commercial credit through direct and guaranteed farm loans,” the release said. “Soon, all direct loan borrowers will receive a letter from USDA describing the circumstances under which additional payments will be made to distressed borrowers and how they can work with their FSA local office to discuss these options.”
