Enhancing Program Access and Delivery Farm Loans Rule
The Farm Service Agency (FSA) has introduced new rules to make it easier for farmers and ranchers to get and use farm loans. These changes will help them make more money and invest in their farms. FSA is working to make these loan programs easier to access and use, especially for those who need it most.
The three most notable policy changes include:
- Establishing a new low-interest installment set-aside program for financially distressed borrowers. Eligible financially distressed borrowers can defer up to one annual loan installment per qualified loan at a reduced interest rate, providing a simpler and expedited option to resolve financial distress in addition to FSA’s existing loan servicing programs.
- Providing all eligible loan applicants access to flexible repayment terms that can increase profitability and help build working capital reserves and savings. By creating upfront positive cash flow, borrowers can find opportunities in their farm operating plan budgets to include a reasonable margin for increased working capital reserves and savings, including for retirement and education.
- Reducing additional loan security requirements to enable borrowers to leverage equity. This reduces the amount of additional security required for direct farm loans, including reducing the frequency borrowers must use their personal residence as additional collateral for a farm loan.
The new rules were developed with feedback from farmers and are expected to improve the loan program's performance and benefit borrowers.
Resources:
Fact Sheet – Enhancing Program Access and Delivery for Farm Loans Rule Chinese (Simplified) | Hmong | Korean | Punjabi | Spanish | Thai | Vietnamese
Specialty Crop Growers can get Help to Offset On-farm Food Safety Expenses for 2024 and 2025
Food Safety Certification for Specialty Crops (FSCSC) assists specialty crop operations that incurred eligible on-farm food safety certification and expenses related to obtaining or renewing a food safety certification. FSCSC covers a percentage of the specialty crop operation’s cost of obtaining or renewing its certification, as well as a portion of related expenses.
Eligible FSCSC applicants must be a specialty crop operation, meet the definition of a small or medium-size business, and have paid eligible expenses related to certification.
A small business has an average annual monetary value of specialty crops sold by the applicant during the three-year period preceding the program year of no more than $500,000.
A medium size business has an average annual monetary value of specialty crops the applicant sold during the three-year period preceding the program year of at least $500,001 but no more than $1,000,000.
Specialty crop operations can receive the following cost assistance:
- Developing a food safety plan for first-time food safety certification.
- Maintaining or updating an existing food safety plan.
- Food safety certification.
- Certification upload fees.
- Microbiological testing for products, soil amendments and water.
- Training.
FSCSC payments are calculated separately for each eligible cost category. Details about payment rates and limitations are available at farmers.gov/food-safety.
Interested applicants have until January 31, 2025, to apply for assistance for 2024 eligible expenses. FSA will issue payments as applications are processed and approved. For program year 2025, the application period will be January 1, 2025, through January 31, 2026. FSA will issue 50% of the calculated payment for program year 2025 following application approval, with the remaining amount to be paid after the application deadline. If calculated payments exceed the amount of available funding, payments will be prorated.
Specialty crop producers can apply by completing the FSA-888-1, Food Safety Certification for Specialty Crops Program (FSCSC) for Program Years 2024 and 2025 application. The application, along with the AD-2047, Customer Data Worksheet and SF-3881, ACH Vendor/Miscellaneous Payment Enrollment Form, if not already on file with FSA, can be submitted to the FSA office at any USDA Service Center nationwide by mail, fax, hand delivery, or via electronic means. Alternatively, producers with an eAuthentication account can apply for FSCSC online. Producers interested in creating an eAuthentication account should visit farmers.gov/sign-in.
Specialty crop producers can also call 877-508-8364 to speak directly with a FSA employee ready to assist. Visit farmers.gov/food-safety for additional program details, eligibility information and forms needed to apply.
USDA Launches Online Debt Consolidation Tool to Increase Farmer Financial Viability
The Debt Consolidation Tool is an innovative online tool available through farmers.gov that allows agricultural producers to enter their farm operating debt and evaluate the potential savings that might be provided by obtaining a debt consolidation loan with USDA’s Farm Service Agency (FSA) or a local lender.
A debt consolidation loan is a new loan used to pay off other existing operating loans or lines of credit that might have unreasonable rates and terms. By combining multiple eligible debts into a single, larger loan, borrowers may obtain more favorable payment terms such as a lower interest rate or lower payments. Consolidating debt may also provide farmers additional cash flow flexibilities.
The Debt Consolidation Tool is a significant addition to FSA’s suite of improvements designed to modernize its Farm Loan Programs. The tool enhances customer service and increases opportunities for farmers to achieve financial viability by helping them identify potential savings that could be reinvested in their farming operation, retirement accounts, or college savings accounts.
Producers can access the Debt Consolidation Tool by visiting farmers.gov/debt-consolidation-tool. The tool is built to run on modern browsers including Chrome, Edge, Firefox, or the Safari browser. Producers do not need to create a farmers.gov account or access the authenticated customer portal to use the tool.
FSA has recently made several impactful farm loan program improvements, including:
- The Loan Assistance Tool that provides customers with an interactive online, step-by-step guide to identifying the direct loan products that may be a fit for their business needs and to understanding the application process.
- The Online Loan Application, an interactive, guided application that is paperless and provides helpful features including an electronic signature option, the ability to attach supporting documents such as tax returns, complete a balance sheet, and build a farm operating plan.
- An online direct loan repayment feature that relieves borrowers from the necessity of calling, mailing, or visiting a local USDA Service Center to pay a loan installment.
- A simplified direct loan paper application, reduced from 29 pages to 13 pages.
- A new educational hub with farm loan resources and videos.
USDA encourages producers to reach out to their local FSA farm loan staff to ensure they fully understand the wide range of loan and servicing options available to assist with starting, expanding, or maintaining their agricultural operation.
Conducting Business with FSA Electronically
With a USDA Customer Level 2 eAuth Account you can have one stop access to your USDA program participation information.
Visit the Online Services page for apps:
State Committee Members
Georgie Cartanza, Dover
Kevin Evans, Bridgeville
James Harmon, Lewes
Dale Scuse (Chairperson), Smyrna
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