Dive Brief:
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The U.S. Department of Agriculture introduced the Distressed Borrowers Assistance Network, an effort aimed at better serving farmers and ranchers struggling with finances.
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Through a series of cooperative agreements, the network will connect distressed borrowers with custom-tailored assistance to help them regain their financial footing in agriculture, according to a release. USDA’s Farm Service Agency announced its plan at the Farm Aid Festival in Saratoga Springs, New York.
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The USDA is collaborating with farm support organizations and land-grant institutions on the effort. The department will provide loan policy training so the groups can work alongside the FSA to help farmers understand what financial options are available to them.
Dive Insight:
Some of the biggest stresses weighing on agricultural producers are finance-related, from understanding balance sheets and farm performance metrics to being familiar with federal loan programs. Complex tax implications related to selling operations and debt reorganization processes are tasks that farmers tend to benefit from guidance on.
Having someone with agricultural finance experience to help farmers and ranchers work through difficulties can “be the difference between them losing the farm or prospering,” FSA Administrator Zach Ducheneaux said in a statement.
The Distressed Borrowers Assistance Network aims to help struggling farmers by providing the technical resources and guidance of USDA partners to experts in distressed and underserved communities, according to a release.
The network comes as the USDA overhauls its lending programs in an effort to reach more farmers. The department has added new repayment flexibilities and retooled its website to be more user-friendly, among other changes.
The FSA will manage the network in collaboration with partner organizations. Partners in the program include Farm Aid, Rural Advancement Foundation International, the University of Arkansas, the Socially Disadvantaged Farmers and Ranchers Policy Center at Alcorn State University and the University of Minnesota.
“The Distressed Borrowers Assistance Network underscores our dedication to farmers and ranchers receiving the tailored support they need,” Ducheneaux said.