Contact the loan office when repayment problems emerge
A farm experiencing a fall in income should contact its FSA loan office before missed installments accumulate. FSA describes servicing options for eligible direct borrowers whose accounts become distressed or delinquent, including circumstances arising from weather, prices or personal difficulties. The available response depends on the loan and the facts; it is not an automatic cancellation of debt. Retain all notices and identify the response deadlines, because a request for help must follow the applicable process.
Document a feasible way forward
Provide an updated balance sheet, realistic production forecast and explanation of what has changed since the loan was approved. A proposal should show whether revised payment timing, a different operating plan or another permitted arrangement can restore repayment capacity. Discuss guarantees and collateral before disposing of financed assets. Certified agricultural mediation may help address a disagreement, but it does not itself oblige FSA or another creditor to accept a particular settlement. Keep written records of submissions and agreed next steps while the servicing review is underway.
Federal servicing and agricultural mediation
- FSA loan-servicing resourcesOfficial guidance for direct borrowers facing financial distress and possible servicing options.Visit the organisation ↗
- USDA Certified Mediation ProgramNeutral dispute-resolution contacts for agricultural credit and eligible USDA program issues.Visit the organisation ↗