USDA offers temporary debt relief to 12,000 farmers

Published 4:30 pm Wednesday, January 27, 2021

WASHINGTON — The USDA will temporarily suspend some debt collections and foreclosures as part of the Biden administration’s plan to help financially distressed farms during the pandemic.

According to USDA officials, the agency will temporarily halt past-due debt collections, wage garnishments and non-judicial foreclosures for farmers borrowing under two major loan programs administered by the Farm Service Agency. These loan programs are called the Farm Storage Facility Loan and the Direct Farm Loan.

Additionally, the department will seek to stop foreclosures and evictions that are already in progress under the two programs.

The decision was announced on Wednesday, Jan. 27.

USDA has also extended the deadlines for producers to respond to loan servicing actions. This, officials say, will help farmers, including delinquent borrowers, who are facing economic hardship.

Data from USDA show this decision will immediately lessen financial hardship for more than 12,000 borrowers nationwide — about 10% of all borrowers in the programs.

The agency did not immediately respond to Capital Press‘ request for comment about how many of those 12,000 farms are in the Western United States.

“USDA and the Biden administration are committed to bringing relief and support to farmers, ranchers and producers of all backgrounds and financial status, including by ensuring producers have access to temporary debt relief,” Robert Bonnie, the department’s deputy chief of staff, said in a statement.

Bonnie said the Biden administration is evaluating how to improve borrowing options for the future so that farms can continue “earning living expenses, providing for emergency needs and maintaining cash flow.”

Officials say the temporary suspensions will remain in place “until further notice.” A USDA statement says farmers can expect the suspensions to continue for as long as the national COVID-19 disaster declaration is in place.

Government officials encourage farmers who have questions or might be impacted by this decision to contact their local county Farm Service Agency office, where FSA staff can discuss loan servicing options and temporary changes. To learn more, go to www.farmers.gov/coronavirus.

Marketplace