The U.S. Department of Agriculture is temporarily suspending foreclosures and past-due debt collection on certain Farm Service Agency loans to give distressed borrowers relief as they contend with continued economic fallout of the COVID-19 pandemic.
The move affects distressed borrowers under FSA’s Farm Storage Facility Loan and the Direct Farm Loan programs. USDA estimates more than 12,000 borrowers—about 10 percent of the 129.000 producers who borrow from the agency—are eligible for the relief.
Specifically, USDA will temporarily suspend non-judicial foreclosures, debt offsets or wage garnishments, and referring foreclosures to the U.S. Department of Justice. In addition, USDA will work with the U.S. Attorney’s Office to stop judicial foreclosures and evictions on previously referred accounts.
USDA has also extended deadlines for producers to respond to loan servicing actions, including loan deferral consideration for financially distressed and delinquent borrowers and added flexibility to the Guaranteed Loan program.