The U.S. Department of Agriculture (USDA) has announced changes to the Farm Service Agency’s (FSA) Farm Loan Programs, effective September 25, 2024. These updates aim to increase financial viability for farmers and ranchers as part of the Enhancing Program Access and Delivery for Farm Loans rule. The modifications are intended to improve farm profitability by providing essential financing options for operating expenses, land purchases, and equipment.
“USDA recognizes that Farm Service Agency’s loan making and servicing activities are critical for producers, especially in tough times. Providing borrowers the financial freedom to increase profits, save for long-term needs and make strategic investments is the best way to ensure the nation’s farmers and ranchers can build financial equity and resilience,” said Zach Ducheneaux, FSA Administrator. “Implementing these improvements to our Farm Loan Programs is the next step in our ongoing commitment to removing lending barriers that may prevent access to credit for borrowers, especially those who need it most.”
Key policy changes include:
1. Establishing a new low-interest installment set-aside program for financially distressed borrowers.
2. Providing all eligible loan applicants access to flexible repayment terms.
3. Reducing additional loan security requirements.
Under the Biden-Harris Administration, USDA’s FSA has been working on equitable delivery of Farm Loan Programs and improving credit access for small and mid-size family farms. This year's report shows increased loans to young and beginning farmers as well as minority borrowers. Additionally, there is a focus on urban agriculture operations through FSA's microloan program.
To streamline processes, FSA has introduced several tools including:
- The Loan Assistance Tool
- The Online Loan Application
- An online direct loan repayment feature
- A simplified direct loan paper application
Producers are encouraged to contact their local FSA farm loan staff for more information on available options.
FSA supports America’s agricultural community by administering various programs through its national network of state and county offices.
For further details, visit www.fsa.usda.gov or www.usda.gov.
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