EAST LANSING, Mich. — 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.
For qualifying borrowers, payments will equal the amount of money used to make FSA loan installments. Payments must have been made during the production year that extraordinary measures were taken. For example, $40,000 worth of retirement funds were taken out during a production year, and $30,000 was used to make the installment payment. The borrower could be eligible for $30,000 in assistance.
To apply, use the online Assistance Request Portal or go to your local FSA office. Additional details and updates are also available at USDA’s Farmers.gov website. Michigan State University Extension is also available to assist borrowers with navigating the application process. Please contact Chris Bardenhagen at [email protected] or your local farm business management team member to discuss your situation.
USDA has also announced that cash flow assistance is available through the Inflation Reduction Act. A factsheet from USDA is forthcoming, but some information can be found on Farmers.gov. Look for a future MSU Extension article detailing this additional assistance.
— Chris Bardenhagen, Michigan State University Extension
