FCA Encouraging Farm Credit System to Work with Borrowers in Flooded Areas

The Farm Credit Administration is encouraging Farm Credit System lenders to work with borrowers who have been affected by the extensive flooding in the Midwest.  The mid-March “bomb cyclone” dropped heavy rain and triggered massive snowmelt, which led to widespread flooding in the Midwest, particularly in Nebraska and Iowa.  Known damages include loss of livestock, production facilities, and grain in storage.  Also, saturated soil is adversely affecting preparations for spring planting.

FCA regulations and the solid financial position of lenders offer considerable flexibility in providing disaster relief.

FCA said Farm Credit System lenders can alleviate stress for borrowers affected by natural disasters in several ways, including extending the terms of loan repayments and restructuring borrowers’ debt obligations. A Farm Credit Administration official stated, “We encourage institutions to use this flexibility following disasters like this one to help borrowers get back on their feet.”

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