Farmers who use USDA Marketing Assistance Loans for most commodities will now have a 12-month maturity date on the loans instead of nine months, USDA announced Thursday.
The change is effectively immediately and the maturity extension applies for the 2018, 2019 and 2020 crop years. All new crop loans requested before Sept. 30, 2020, will have a 12 month maturity date, USDA stated. Open loans must be in good standing with a maturity date of March 31, 2020, or later.
“Spring is the season when most producers have the biggest need for capital, and many may have or are considering putting commodities under loan. Extending the commodity loan maturity affords farmers more time to market their commodity and repay their loan at a later time,” said U.S. Secretary of Agriculture Sonny Perdue.
Active loans will automatically be extended for three months, including loans that matured on March 31, USDA stated. Still, producers who prefer a nine-month loan can contact their local FSA office.
More details on the Marketing Assistance Loans can be found at https://www.farmers.gov/…
Groups Call for Aid to Farmers Who Rely on Local and Regional Markets
The National Sustainable Agriculture Coalition and more than 750 groups nationally wrote Perdue asking USDA to work on ways to provide direct aid to farmers that sell into local and regional markets.
Those markets may involve farmer markets, as well as schools, restaurants or other institutions affected by the coronavirus. These farmers are projected to lose more than $1 billion in sales due to the disruptions.
"Many farmers are struggling now, and all deserve aid, but none have been more affected than those that have seen their local and regional markets evaporate overnight. The important tools to keep people safe and limit the harm of this pandemic - social distancing, the closure of schools, institutions, and restaurants, and ensuring that food system workers stay safe - are an enormous challenge for farmers that sell into local and regional markets," the letter to Perdue stated.
The full letter can be found at https://bit.ly/…
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