The Department of Agriculture is now giving producers with eligible crops 12 months instead of nine to repay marketing assistance loans.
The extension was mandated by the Coronavirus Aid, Relief, and Economic Security Act, or CARES Act, which was signed by President Donald Trump on March 27.
“Extending the commodity loan maturity affords farmers more time to market their commodity and repay their loan at a later time,” Secretary of Agriculture Sonny Perdue said.
Spring is "when most producers have the biggest need for capital, and many may have or are considering putting commodities under loan," he said.
The maturity extension applies to non-recourse loans for 2018, 2019 and 2020 crop years. The department said eligible open loans must be in good standing with a maturity date of March 31 or later, or new crop year (2019 or 2020) loans requested by Sept. 30.
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All new loans requested by Sept. 30 will have a maturity date 12 months following the date of approval, but loans requested after that will have a term of nine months. Current and active loans will be automatically extended an additional three months.
USDA’s Farm Service Agency already extended loans that matured March 31.
Below is a list of eligible crops:
- Chickpeas (small and large)
- Cotton (upland and extra-long staple)
- Dry peas
- Grain sorghum
- Rice (long and medium grain)
- Unshorn pelts,
- Wool (graded and nongraded)
- Mustard seed
- Sunflower seed
- Sesame seed
*Seed cotton and sugar are not eligible.
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