The USDA announced policy changes to the FSA’s Farm Loan Programs that will take effect on September 25. These changes are intended to increase the opportunity for farmers’ and ranchers’ financial viability by providing options to cover operating expenses, land purchases and equipment.

The three most noteworthy policy changes include:

  • Creation of a low-interest installment set-aside program for financially distressed borrowers. Eligible financially distressed borrowers can defer one annual loan installment per qualified loan at a reduced interest rate.
  • Providing eligible loan applicants with flexible repayment terms that can increase profitability and help build working capital reserves.
  • Reducing loan security requirements so borrowers can leverage equity.

FSA will also include additional data in its annual report to Congress. This will allow Congress, stakeholders and the general public to verify that progress is made in improving services to underserved producers.

Read more on changes to the FSA Farm Loan Program here.