USDA has announced an additional $250 million in automatic payments for distressed farm loan borrowers, specifically targeting those with direct and guaranteed loans.
“The payments announced today help to ensure that more than 4,600 producers across the country will see another production season,” said Zach Ducheneaux, USDA Farm Service Agency administrator. “Importantly, however, we’re not only addressing current crises. We’re also creating a more resilient and supportive loan system for the future.”
Borrowers with real estate-secured loans must sign a shared appreciation agreement, which allows USDA to recapture part of the loan write-down if the property value increases. Payments will be made automatically for qualifying delinquencies as of Sept. 30, either through checks for guaranteed loans or direct assistance for delinquent loans.
