The U.S. Department of Agriculture (USDA) has announced significant updates to the Farm Loan Programs from the Farm Service Agency (FSA). The changes will take effect beginning on September 25 and are designed to help farmers and ranchers become more financially stable. The updates are part of the new rule, Enhancing Program Access and Delivery for Farm Loans, and include three main changes.
First, FSA is offering a new program where financially struggling farmers can delay one loan payment per year at a lower interest rate. Second, FSA is allowing more flexible repayment terms to help farmers make more money and save up. Third, FSA is reducing the amount of collateral needed for direct farm loans, so farmers don’t have to put up as much property to get a loan.
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,” FSA Administrator Zach Ducheneaux said in a press release. “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.”
These updates are designed to give farmers more financial freedom and reduce stress, especially for new and beginning farmers. Additionally, the USDA introduced online tools to streamline the loan application and repayment processes, making them more user-friendly and efficient.
Listen to the report below.
Brian German
Ag News Director / AgNet West