USDA temporality suspends debt collections on some farm loans because of COVID-19

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USDA temporality suspends debt collections on some farm loans because of COVID-19

The USDA says it will temporarily suspend debt collections and foreclosures for some borrowers because of the coronavirus pandemic.

USDA is suspending these services for borrowers under the Farm Storage Facility Loan and Direct Farm Loan programs by the Farm Service Agency.

USDA has also extended deadlines for producers to respond to loan actions, including loan deferral consideration for financially distressed and delinquent borrowers.

More than 12,000 borrowers, about 10 percent of all borrowers, are eligible for relief.

Robert Bonnie, deputy chief of staff in the office of the secretary, says the USDA and the Biden administration are committed to bringing relief and support to farmers, ranchers, and producer of all backgrounds and financial status.

USDA will temporarily suspend non-judicial foreclosures, debt offsets or wage garnishments, and referring foreclosures to the Department of Justice. The department says it will work with the US Attorney’s Office to stop judicial foreclosures and evictions on accounts previously referred to the DOJ. Flexibilities have also been made to lenders to assist customers in the Guaranteed Loan program.

The suspension is expected to continue while the national COVID-19 disaster declaration is in place.