Many farmers faced financial challenges during the pandemic, making it hard to make ends meet. Some farmers even needed to take extraordinary measures to pay their loans, such as borrowing money from family members or dipping into their retirement. For farms with direct loans through the United States Department of Agriculture (USDA) Farm Service Agency (FSA), Congress has provided funds to help those in financial distress.
Assistance is available to borrowers who took extraordinary measures to make loan payments. Payments made during the period of Feb. 28, 2020, through Oct. 18, 2022, may qualify. Examples of qualifying extraordinary measures include:
Obtained additional debt.
Deferred on a non-FSA loan.
Sold assets that are essential to your operation.
Early withdrawal of retirement funds.
There are other situations where extraordinary measures assistance may also apply. Please see the Extraordinary Measures Assistance factsheet for more details.
Supporting records are required for this assistance. Examples include bills of sale for assets sold, lender documents or bank statements. Records showing early withdrawal from retirement accounts may also be used, depending on the circumstance.
Please note that farmers whose direct loans are fully paid off are not considered “borrowers.” Only farms with active loans qualify for this type of assistance.
Source: msu.edu
Photo Credit: istock-arthon-meekodong
Categories: Michigan, Business