USDA offers deferment option for Farm Storage Facility Loan borrowers
Producers using Farm Storage Facility Loans experiencing financial hardship associated with the COVID-19 pandemic can apply for a one-time annual installment payment deferral.
No fees or prepayment penalties apply for borrowers who choose this loan flexibility option through the United States Department of Agriculture Farm Service Agency, according to a news release.
The one-time deferral request can be applied to loans with three-, five, seven-, or 10-year terms. The deferral option is not available for 12-year term loans.
FSFL installment payments will remain the same, except in the last year. The original loan interest rate and annual payment due date will remain the same, the release stated. Since the payment deferral is a one-year loan term extension, the final payment will be higher due to additional accrued interest.
Borrowers interested in deferral should contact the FSA to make the request and to obtain, complete and sign required forms. FSFLs are low-interest financing options for producers to store, handle and transport eligible commodities, according to the release.