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USDA updates Farm Service Agency’s Farm Loan Programs 

The USDA has announced changes to the Farm Service Agency’s Farm Loan Programs.  FSA Administrator Zach Ducheneaux says the changes are designed to help borrowers make strategic investments in the enhancement or expansion of their ag operations.

The changes include:

• Establishing a new low-interest installment set-aside program for financially distressed borrowers. Eligible applicants can defer up to one annual loan installment per qualified loan at a reduced interest rate.
• Providing all eligible loan applicants access to flexible repayment terms to can help increase profitability and help build working capital reserves.
• Reducing additional loan security requirements to enable borrowers to leverage equity.

Ducheneaux says implementing these improvements is the next step in the agency’s commitment to removing lending barriers that may prevent access to credit for borrowers, especially those who need it most.

The changes will go into effect on September 25, 2024.