Due to the national public health emergency caused by COVID-19, the United States Department of Agriculture has announced the temporary suspension of overdue debt collections and foreclosures for distressed borrowers under the Farm Storage Facility programs. Loan and Direct Farm Loan administered by the Farm Service. Agency.
USDA will temporarily suspend non-judicial foreclosures, debt set-offs or wage garnishments, and return the foreclosures to the Department of Justice; and the USDA will work with the United States attorney’s office to stop court foreclosures and evictions on accounts that were previously referred to the Department of Justice. In addition, the USDA has extended the timeframes for producers to respond to loan management actions, including the counterpart of the deferral of loans for financially distressed and delinquent borrowers. In addition, for the secured loan program, flexibilities have been made available to lenders to help them serve their clients.
The USDA announcement expands on previous actions taken by the department to reduce financial difficulties. According to USDA data, more than 12,000 borrowers – about 10% of all borrowers – are eligible for relief. Overall, FSA lends to more than 129,000 farmers, ranchers and producers.
“The USDA and the Biden administration are committed to providing relief and support to farmers, ranchers and producers from all walks of life and of all financial backgrounds, including ensuring that producers have access to temporary debt relief,” he said. said Robert Bonnie, Deputy Chief of Staff, Office of the Secretary. “Not only is the USDA suspending the pipeline of adverse actions that could lead to the garnishment and collection of debts, but we are also working with the Departments of Justice and Treasury to suspend all actions already referred to the applicable agency. Additionally, we are evaluating ways to improve and address agriculture-related debt with the goal of keeping farmers on their farms to earn a living, meet emergency needs, and maintain cash flow. “