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USDA offers annual installment deferral option for farm storage facility loan borrowers

To assist farm storage facility loan borrowers experiencing financial hardship from the pandemic and other challenges in production agriculture, USDA’s Farm Service Agency is offering a one-time annual installment payment deferral option.  

No fees or prepayment penalties apply for borrowers who choose this 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 with terms of three, five, seven or 10 years. The installment deferral option is not available for 12-year term loans. 

The FSFL installment payments will remain the same, except for the final year: The original loan interest rate and annual payment due date will remain the same, but because the installment payment deferral is a one-year loan term extension, the final payment will be higher because of the additional accrued interest. 

Borrowers interested in exercising the one-time annual installment deferral option should contact FSA to make the request and to obtain, complete and sign required forms. 

In addition to offering flexibilities for FSFLs, FSA has also instigated other flexibilities to help producers impacted by the pandemic, including 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. More information on these flexibilities can be found at farmers.gov/coronavirus. 

All USDA Service Centers are open for business, including some that are open by appointment only. All visitors wishing to conduct business with the FSA, Natural Resources Conservation Service or any other service center agency should call ahead and schedule an appointment.  

To locate a local FSA office, visit farmers.gov/service-center-locator.