June 16, 2024

Are there Any Regulatory Changes that Affected the Farm Loans Process in Kansas?

Kansas is among the leading states in agricultural productivity ranking as fifth in the USA for all agricultural production. A recent study by the Kansas Department of Agriculture shows that in 2017, there were about 58,570 farms that generated over $18.7 billion in general agricultural output.  Kansas Farm Service Agency has been helping both small scale and large-scale farmers to improve productivity by offering loans. The following are five regulatory changes that have affected the process of farm credit in Kansas.

1. Extension of Deadline for Applicants

With the world being in a huge crisis, all economic sectors have been affected, agriculture being one of them. For this reason, the Farm Service Agency (FSA) has extended the deadline for loan application. It will give farmers under the FSA ample time to prepare their farms while in quarantine before applying for the loan.

2. Preparation of Direct Loan Documents

Many government offices in Kansas have closed down due to the COVID-19 outbreak. The Kansas Farm Service Agency cannot access personal records for people applying for loans and therefore they cannot verify the security interest of these farmers. This has left the FSA to prepare direct loan documents without complete lien. By doing this, the FSA has become prone to fraud and loss.

3. Extension of Loan Response Deadline

Farm Service Agency has extended the loan response deadline for all farmers. The loan deadline extension applies even to the farmers who have deferred loans and delinquent debtors. These steps have been as a result of many people not being at work due to the coronavirus outbreak and are facing financial distress. This step by the FSA has eased a heavy burden for farmers since they do not have to worry about defaulting the loans during this period.

4. Suspension of Loan Acceleration

A huge percentage of loans have not been paid since most people are on compulsory leave and others have lost their jobs due to the COVID-19 pandemic. The FSA has temporarily suspended all loan acceleration and interests to ease the burden of framers in these hard times. The United States Attorney’s Office will decide on whether to put an end to foreclosures and evictions on borrowers’ accounts.

5. Means of Contacting the FSA

It has become challenging to visit Farm Service Agency since people are in quarantine. Regarding this, The FSA has added means on how farmers can contact them. The FSA has allowed framers to send in applications via fax and electronic signature. It has also improved its online customer services through which farmers can access government portal. The government portal allows farmers to track loan applications, loan payments, sign documents, and access loan information.

Kansas Farm Service Agency has been of great help to all farmers, full time and part-time, by offering loans and information to help improve productivity. However, acquiring farm credit in Kansas can be challenging at times, and farmers ought to consult with the necessary agencies and persons before applying. With the outbreak of COVID-19, the FSA has made some regulatory changes that have eased the burden of farm credit for farmers. Please visit here to know more: https://unitedfarmmortgage.com/farm-loans