USDA temporarily suspends collections, garnishments, non-judicial foreclosures and other penalties on farm loans

The Department of Agriculture is temporarily suspending non-judicial foreclosures, debt offsets, wage garnishments and collections on past-due farm loans, citing the financial stresses of the coronavirus pandemic, a USDA news release said. The action applies to borrowers under the Farm Storage Facility Loan and the Direct Farm Loan programs, which are administered by the Farm Service Agency.

"Additionally, USDA has extended deadlines for producers to respond to loan servicing actions, including loan deferral consideration for financially distressed and delinquent borrowers. In addition, for the Guaranteed Loan program, flexibilities have been made available to lenders to assist in servicing their customers," the release said.

More than 12,000 farmers, ranchers and producers—about 10 percent of the more than 129,000 FSA borrowers nationwide—should be eligible for the new relief, according to USDA data, the agency said. The suspension will remain in place until further notice, and is expected to continue as long as the nationwide coronavirus disaster declaration is in place.