USDA

USDA Temporarily Suspends Debt Collections on Farm Loans

Clint Thompson USDA

The U.S. Department of Agriculture (USDA) has announced that due to the COVID-19 pandemic, it is temporarily suspending past-due debt collections and foreclosures for distressed borrowers under the Farm Storage Facility Loan and the Direct Farm Loan programs administered by the Farm Service Agency (FSA). USDA will also temporarily suspend non-judicial foreclosures, debt offsets or wage garnishments, and referring foreclosures to the Department of Justice; and USDA will work with the U.S. Attorney’s Office to stop judicial foreclosures and evictions on accounts that were previously referred to the Department of Justice.

USDA

Plus, USDA has extended deadlines for producers to respond to loan servicing actions, including loan deferral consideration for financially distressed and delinquent borrowers. In addition, for the Guaranteed Loan program, flexibilities have been made available to lenders to assist in servicing their customers. The temporary suspension is in place until further notice and is expected to continue while the national COVID-19 disaster declaration is in place

Producers are urged to contact their county FSA office to discuss these programs and temporary changes to farm loan deadlines and the loan servicing options available. For Service Center contact information, visit farmers.gov/coronavirus.