Funds available for distressed farm loan borrowers

WASHINGTON, D.C. — The U.S. Department of Agriculture has announced $300 million in assistance to distressed direct and guaranteed farm loan borrowers.

The funding announced Friday, Dec. 20, is expected to provide assistance to more than 12,800 distressed direct and guaranteed Farm Loan Programs borrowers, officials said.

“USDA has always been committed to standing by our nation’s farmers and ranchers, especially in their most challenging times,” Agriculture Secretary Tom Vilsack said. “At USDA, we are not only addressing immediate financial challenges but also working every day to build a stronger, more supportive loan system that ensures farmers have the tools they need to succeed now and into the future.”

This round of automatic assistance includes approximately:

$168.5 million for outstanding delinquencies on loans as of Nov. 30, 2024, for direct borrowers one or more days delinquent as of that date, and in the amount of any outstanding delinquencies, as of Sept. 30.

$5 million for outstanding delinquencies on qualifying guaranteed loans as of Sept. 30, for borrowers delinquent as of Sept. 30, but by fewer than 30.

$67.3 million for payment of the next installment due on all FLP direct loans.

$35 million for payment in the amount of the next installment due on qualifying direct loans for borrowers who have accepted an offer to restructure a loan between March 27, 2023, and today through primary loan servicing available through FSA

$9 million for direct Emergency Loans as of Nov. 30.

$4.1 million in assistance for borrowers of qualifying direct loans with protective advances outstanding as of Nov. 30.

$3.9 million for outstanding interest for direct borrowers whose interest exceeds their principal debt owed as of Nov. 30.

$1.8 million for outstanding Economic Emergency loans for borrowers who have both EE loans and qualifying Consolidated Farm and Rural Development Act loans as of Nov. 30.

$109,000 for outstanding non-capitalized interest for all direct borrowers as of Nov. 30.