What Farmers Need to Know About USDA Suspending Farm Loan Debt Collections

COVID-19’s ripple effect has again hit the farming community. This time, USDA responded by announcing a temporary suspension of past-due debt collections and foreclosures for borrowers under the Farm Storage Facility Loan and the Direct Farm Loan programs administered by FSA.

This move suspends non-judicial foreclosures, debt offsets or wage garnishments and referring foreclosures to the Department of Justice. In addition, USDA is working with the U.S. Attorney’s Office to stop judicial foreclosures and evictions on accounts previously referred to the Department of Justice.

USDA also extended deadlines for borrowers to respond to loan services actions such as loan deferral consideration for financially distressed and delinquent borrowers. And for the Guaranteed Loan program, lenders have flexibilities available to assist their loan customers.

With this announcement, 10% of borrowers – or 12,000 people – are eligible for relief.

“Not only is USDA suspending the pipeline of adverse actions that can lead to foreclosure and debt collection, we are also working with the Department of Justice and Treasury to suspend any actions already referred to the applicable agency,” said Robert Bonnie, deputy chief of staff, Office of the Secretary in a recent news release.

“Additionally, we are evaluating ways to improve and address farm-related debt with the intent to keep farmers on their farms earning living expenses, providing for emergency needs and maintaining cash flow,” he continued.

The suspension is in place until further notice and is expected to continue while the nation-wide COVID-19 disaster declaration is in place.

“USDA and the Biden Administration are committed to bringing relief and support to farmers, ranchers and producers of all background and financial status, including by ensuring producers have access to temporary debt relief,” Bonnie said.


Latest News

Senators Reintroduce the Next Generation Fuels Act

Emily Skor, Growth Energy CEO, says the fuel industry has only “scratched the surface” of ethanol potential. She feels this act will help unleash ethanol’s capabilities.

Farming The Northern Plains: Wheat Is A Winner, Corn Is A Headache

“The planting priorities are number one,” says Dr. Lee Briese of Central Ag Consulting. Jamestown, ND

The Equity and WebAir Launch Drone Spray Company

Green Creek Drone Company will be led by Tony Weber as general manager and will also be working closely with The Equity’s Agronomy Department providing custom application of fungicides in select areas in 2023.

Helena’s Two New Brands With A Sustainability Focus

The company says these new products balance crop production needs with environmental stewardship to increase yields responsibly and efficiently.

How Important is U.S. Ag and Food to the Economy?

In celebration of National Ag Day and National Ag Week, the 2023 Feeding the Economy report shows just how vital the industry is to U.S. families, communities and the world.

Ferrie: Ready, Set, Whoops! A Fast Start To Fieldwork Could Cost You Big In Corn At V5

Caution can help you avoid creating compaction or density layers. Plus, if you're applying anhydrous now, allowing 14 days between the application and planting can prevent dead or damaged plants and costly yield dings.