Illinois farmers with direct and FSA guaranteed loans can apply for the $123 million of relief funding made available by the U.S. Department of Agriculture. The new payment options will help distressed farm loan borrowers who are facing foreclosure or bankruptcy.

According to John Gehrke, the chief loan officer with the Illinois FSA, while the majority of Illinois farmers are keeping up with their loan payments, the agriculture industry is volatile, and so it's always important to keep a close eye on it.

The new funding will enable FSA loan officers to have additional tools to aid farmers who may have used their cash reserves or cashed in their retirement accounts to keep up with their FSA payments. The FSA loan officers will review hundreds of accounts on a case-by-case basis, with the aim of helping as many farmers as possible.

One of the issues that the FSA faces is the growing volume of loans and a shortage of people to work directly with borrowers. The FSA prefers to build relationships with borrowers so that when times get tough, that relationship will already be built. But, as Gehrke notes, they do not always have that extra time available to go out to farms and get to know the borrowers.

In case of financial distress, Gehrke encourages farmers to visit their local FSA office and talk to the loan officers about their concerns. The agency is willing to help by changing rates, terms, and payment dates to keep the dialogue open and help farmers navigate difficult times.

Photo Credit: USDA