The U.S. Department of Agriculture has launched the Debt Consolidation Tool. It’s an online tool through farmers.gov. It allows producers to enter their farm operating debt and evaluate the potential savings of a debt consolidation loan with the Farm Service Agency 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 and ranchers additional cash flow flexibilities.
The Debt Consolidation Tool is an addition to FSA’s suite of improvements designed to modernize its Farm Loan Programs: https://calc-fsa.fpac.usda.gov/
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