Farm Credit Relief: Payment Deferral, Home Protection, and Fairer Appeals Process.
This Act provides significant financial relief for distressed farmers by mandating a two-year deferral of principal and interest payments on direct farm loans, setting the interest rate at 0.125% during this period. It reforms loan collateral rules, ensuring a farmer's principal residence is the last asset used as security. Crucially, the law simplifies the appeals process against the Farm Service Agency (FSA), shifting the burden of proof onto the agency for lower-income appellants.
Key points
Two-year payment deferral and 0.125% interest rate for eligible farmers with direct farm loans who are financially distressed or delinquent.
Increased protection for the farmer's principal residence, which can only be used as loan collateral if other assets are insufficient.
Easier access to loans by removing time limits on loan closures and allowing debt refinancing, even after a previous debt write-down.
Reformed appeals process: The FSA must prove its adverse decision was correct if the farmer's income is below $300,000 Adjusted Gross Income (AGI).
Introduced
Citizen Poll