USDA’s Farm Service Agency will broaden the use of the Disaster Set-Aside loan provision.
The DSA is normally used in the wake of natural disasters.
It allows farmers with USDA farm loans who are affected by COVID-19, and are determined eligible, to have their next payment set aside. FSA may also set aside a second payment for farmers who have already had one payment set aside because of a prior designated disaster – in some cases.
Direct loan borrowers will receive a letter with the details of the expanded Disaster Set-Aside authorities, which includes the possible set-aside of annual operating loans. It will also include explanations of the additional loan servicing options that are available.
The due date for set-aside payments is moved to the final maturity date of the loan or extended up to twelve months in the case of an annual operating loan – in an effort to help improve cash flow in the current production cycle . Any principal set-aside will continue to accrue interest until it is repaid.
To discuss or request a loan payment Set-Aside, borrowers should call or email the farm loan staff at the Knox County FSA office at 342-5138.