Due to the ongoing COVID-19 pandemic, the USDA’s Farm Service Agency is offering a one-time annual installment payment deferral option, in order to assist Farm Storage Facility Loan borrowers experiencing financial hardship and other challenges in production agriculture.
There are no fees or prepayment penalties applied to borrowers that choose the FSFL loan flexibility option.
"Farmers are facing challenging times because of the pandemic, and FSA is constantly looking for ways to offer flexibilities to our customers to help alleviate financial stressors," said FSA administrator Richard Fordyce. "This storage facility loan servicing option affords eligible borrowers more time to make a payment and may stop loan acceleration, foreclosure or liquidation."
Eligible borrowers can request a one-time only annual installment payment deferral for loans of three, five, seven or 10-year terms.
Except the last year, all FSFL installment payments will remain the same and the original loan interest rate and annual payment due date will remain the same.
However, because the installment payment deferral is a one-year loan term extension, the final payment will be higher due to additional accrued interest.
Borrowers interested in taking the one-time annual installment deferral option need to contact their FSA in order to request and obtain and then complete and sign the required forms.
In addition to offering flexibilities for FSFLs, FSA has also made other flexibilities to aid producers impacted by COVID-19.
This includes relaxing the loan-making process for farm operating and ownership loans and implementing the Disaster Set-Aside provision that enables an upcoming installment on a direct loan to be set aside for the year.
For more information on loan flexibilities, go to farmers.gov/coronavirus.