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Source: NATIONAL ASSOCIATION OF STATE DEPARTMENTS OF AGRICULTURE, 3/20/12
The Farm Service Agency (FSA) has published a final rule, effective May 18, 2012, for direct and guaranteed loans under the Conservation Loan Program. The FSA adopted some changes based on comments received about the interim rule, including amending the definitions of "Conservation Practice", "Forest Stewardship Management Plan", and "Conservation Project." In addition, the length of the repayment period has been extended to a maximum of 30 years (instead of the current 20 years) to reduce competition between commercial lenders and FSA. FSA also clarified that lenders must ensure the borrower remains in compliance with their conservation plan. Finally, FSA ruled that loans for $25,000 or less may be secured by a lien on chattels instead of real estate. For further information, including a discussion of the comments received, click here.
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