Normally used following a natural disaster, the Disaster Set-Aside loan provision through the Farm Service Agency will be expanded for those affected by COVID-19.

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Normally used following a natural disaster, the Disaster Set-Aside loan provision through the Farm Service Agency will be expanded for those affected by COVID-19.


According to the U.S. Department of Agriculture, eligible farmers would be able have their next payment set aside with a possibility of a second payment set aside.


“This immediate change of the Set-Aside provision can provide some welcome financial relief to borrowers during this current crisis,” said FSA Administrator Richard Fordyce in a news release. “FSA recognizes that some customers may need this option to improve their cash flow circumstances in response to the COVID-19 outbreak.”


A letter has been sent out to FSA direct loan borrowers with detailed explanations along with additional loan options.


Extended up to 12 months in the case of an annual operating loan, according to the USDA, the set-aside payment’s due date is moved to the final maturity date of the loan aimed to improve a borrower’s cashflow during the production cycle.


Interest will continue to accrue from the set-aside until it is repaid.


It was previously announced that the loan-making process will add flexibilities to provide credit to producers in need for servicing direct and guaranteed loans.


Borrowers should call or email the farm loan staff at their local FSA county office to discuss or request a loan payment Set-Aside or to discuss loan making and servicing flexibilities and other needs or concerns.


For more information visit, farmers.gov/coronavirus.