The U.S. Department of Agriculture’s Farm Service Agency is making changes to its farm loan programs, effective Sept. 25, 2024.
The changes, according to FSA Administrator and South Dakota rancher Zach Ducheneaux, are intended to increase opportunities for farmers and ranchers to be financially viable.
Ducheneaux says a lot of analysis has been done to determine what changes were made.
Ducheneaux says providing borrowers the financial freedom to save for long-term needs, make strategic investments and increase profits is the best way for the nation’s farmers and ranchers to build financial equity and resilience.
He says they had four key objectives when making the Farm Loan Program changes.
The three most notable policy changes include:
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Establishing a new low-interest installment set-aside program for financially distressed borrowers.
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Providing all eligible loan applicants access to flexible repayment terms that can increase profitability and help build working capital reserves and savings.
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Reducing additional loan security requirements to enable borrowers to leverage equity.
For more information, go to fsa.usda.gov or stop at your local USDA FSA office.
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