Farm Loan Relief: Payment Deferral, Lower Interest, and Appeals Reform.
This Act provides significant financial relief to distressed farmers by mandating a two-year deferment on principal and interest payments for direct farm loans, setting the interest rate at 0.125% during this period. It also reforms the loan process by limiting the use of a farmer's primary residence as collateral and streamlines the appeals process against adverse decisions by the Farm Service Agency (FSA).
Key points
Two-year deferment of principal and interest payments on direct farm loans for eligible borrowers (financially distressed or delinquent), with interest reduced to 0.125%.
Limits the use of a farmer's principal residence as collateral for direct loans; it must be the last option available to secure the loan.
Shifts the burden of proof in appeals to the USDA agency if the appellant farmer's income is $300,000 or less, requiring the agency to prove its adverse decision was not erroneous.
Removes eligibility restrictions for new loans based on a borrower's previous debt write-down or loss to the Secretary of Agriculture.
Status:
Introduced
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