The U.S. Department of Agriculture (USDA) is announcing the launch of the Distressed Borrowers Assistance Network, an initiative designed to provide personalized support to financially distressed farmers and ranchers across the nation. Through a series of Cooperative Agreements, this national network will connect distressed borrowers with individualized assistance to help them stabilize and regain financial footing. USDA’s Farm Service Agency (FSA) made this announcement today at the Farm Aid
Festival in Saratoga Springs, N.Y.
“I started my off-ranch career as a Farm Advocate, working hand-in-hand with other tireless
farmer advocates. Having someone with experiences in ag finance help producers work through
financial difficulties can be the difference between them losing the farm or prospering,” said
FSA Administrator Zach Ducheneaux. “The Distressed Borrowers Assistance Network
underscores our dedication to farmers and ranchers receiving the tailored support they need.
These partnerships illustrate that USDA acknowledges the importance of these advocates
and sees them as part of the solution to ensure program access for all farmers, ranchers, and
producers.”
Network partners include Farm Aid, Rural Advancement Foundation International, the
University of Arkansas, the Socially Disadvantaged Farmers and Ranchers Policy Center at
Alcorn State University, and the University of Minnesota. Through this initiative, we are
collaborating with community-based organizations to better serve financially distressed
producers. Network partners will provide farm loan policy training to the community-based
organizations. This allows the organizations to work alongside FSA to help producers understand
financing available through FSA. The training will ensure that when they visit an FSA office, the partner
organization representative and FSA staff can better assist.
FSA, in collaboration with farm support organizations and land-grant institutions, will facilitate
this network, which will provide the technical resources and guidance of USDA partners to
experts from distressed and underserved communities. The network’s approach includes
integrating knowledgeable service providers to deliver one-on-one support to borrowers. This is so
they can best make plans and understand options to overcome their financial challenges.
The Distressed Borrowers Assistance Network will address the immediate needs of distressed
borrowers and provide comprehensive, wraparound services aimed at addressing the unique
challenges faced by financially distressed producers. Once stabilized financially, borrowers will be better positioned to access new opportunities and continue contributing to the agricultural economy. These investments will also build a system of service providers that can better support agricultural communities for years to come. Investing in a network of agricultural financing service providers to help bridge access to FSA loans is a benefit for rural and agricultural communities.
Additional Farm Loan Programs Improvements
FSA recently announced significant changes to Farm Loan Programs through the Enhancing
Program Access and Delivery for Farm Loans rule. These policy changes, to take effect Sept. 25,
2024, are designed to expand opportunities for borrowers to increase profitability and be
better prepared to make strategic investments in enhancing or expanding their agricultural
operations.
FSA also has a significant initiative underway to streamline and automate the Farm Loan
Program customer-facing business process. For the over 26,000 producers who submit a direct
loan application annually, FSA has made several meaningful 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 fit 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 making and servicing options available to assist with starting,
expanding, or maintaining their agricultural operation. To conduct business with FSA,
producers should contact their local USDA Service Center.
More Information
To learn more about FSA programs, producers can contact their local USDA Service Center.
Producers can also prepare maps for acreage reporting, as well as manage farm loans and view
other farm records data and customer information by logging into their farmers.gov account. If
you don’t have an account, sign up today.
FSA helps America’s farmers, ranchers and forest landowners invest in, improve, protect and
expand their agricultural operations through the delivery of agricultural programs for all
Americans. FSA implements agricultural policy, administers credit and loan programs, and
manages conservation, commodity, disaster recovery and marketing programs through a
national network of state and county offices and locally elected county committees. For more
information, visit fsa.usda.gov.
Leave a Reply