Agricultural Lending

Other Changes

Numerous changes under the Farm Bill assist beginning farmers — those with less than 10 years experience operating a farm or ranch. FSA can now guarantee up to 95 percent of operating loans made to beginning farmers participating in its down payment loan program, up from 90 percent. And FSA may now provide direct farm ownership loans at as little as 4 percent interest under joint financing arrangements, where another lender provides 50 percent or more of the amount financed.

New loan servicing and debt restructuring rules are designed to increase the likelihood that debt restructuring will be successful in helping farmers stay in business, and to reduce the government’s cost associated with these actions. Most noteworthy among the change are rules that strictly limit a borrower to just one instance of debt forgiveness and make these borrowers ineligible for additional direct or guaranteed loans. Also borrowers with delinquent loan accounts are no longer eligible for new direct operating loans.

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