The USDA’s Farm Service Agency asked lenders to suspend adverse actions against guaranteed farm loan borrowers who are members of socially disadvantaged (SDA) groups while the agency develops a method to pay off SDA borrowers' direct and guaranteed loans.
Background: The payoff is required by Sec. 1005 of the American Rescue Plan Act signed into law March 12. The act will pay 120 percent of the outstanding indebtedness of each SDA farmer or rancher with an existing loan as of Jan. 1, 2021. An amendment to delete the provision was defeated on a 50-49 partisan vote.
More: Agriculture Secretary Tom Vilsack told the House Agriculture Committee during a hearing last week that the department will work to minimize disruptions from prepaying guaranteed loans.