USDA Announces Changes to FSA Farm Loan Programs

Last week, the USDA announced a new way of doing business through FSA farm loan programs.  The Department said these changes will increase flexibility and resiliency for Ag producers/borrowers.

“I think that these changes to the terms are really transformative," said FSA Administrator Zach Ducheneaux.  "We're really proud of all three of these provisions that we've lifted up any of them on their own would be a great transformation, but taken as elective, this really signals a new day in AG Finance where FSA is going to position itself as the leader. In the example for how our friends in the lending community might consider doing this.”

Ducheneaux added these changes are scheduled to take effect September 25th and will include: 

• a new low interest installment set aside program for financially distressed borrowers 

• improved repayment terms to increase borrower financial flexibility 

• reduced additional loan security requirements to enable borrowers to leverage equity 

For details on the changes USDA will make to FSA loans, visit the FSA's Website.

If you have a story idea for the PNW Ag Network, call (509) 547-1618, or e-mail glenn.vaagen@townsquaremedia.com