The U.S. Department of Agriculture (USDA) recently announced the launch of the Debt Consolidation Tool, an online tool available through farmers.gov that allows agricultural producers to enter their farm operating debt and evaluate the potential savings that might be provided by obtaining a debt consolidation loan with USDA’s Farm Service Agency (FSA) or a local lender.
“Providing producers with options to structure their debt in a manner that affords them every opportunity to meet the goals of their agricultural operation is the best way to ensure the nation’s farmers and ranchers build financial equity and resilience,” FSA Administrator Zach Ducheneaux said in a news release.
A debt consolidation loan is a new loan used to pay off other existing operating loans or lines of credit that might have unreasonable rates and terms. By combining multiple eligible debts into a single, larger loan, borrowers may obtain more favorable payment terms such as a lower interest rate or lower payments. Consolidating debt also may provide farmers and ranchers additional cash flow flexibilities.
The tool is a significant addition to FSA’s suite of improvements designed to modernize its farm loan programs. The tool is designed to enhance customer service and increases opportunities for farmers and ranchers to achieve financial viability by helping them identify potential savings that could be reinvested in their farming and ranching operation, retirement accounts, or college savings accounts.
Producers can access the tool by visiting farmers.gov/debt-consolidation-tool. The tool is built to run on modern browsers including Chrome, Edge, Firefox or Safari. Producers do not need to create a farmers.gov account or access the authenticated customer portal to use the tool.
Other tools already available to farmers for help with loans include their loan assistance tool, online loan application, online direct loan repayment feature, simplified direct loan paper application and a new educational hub with farm loan resources and videos.