April 23

A new USDA rule eases financial burdens of some farm credit borrowers who must pay under shared appreciate agreements.  SAA obligations can be suspended for one year under the new rule.

Borrowers with SAAs ending in 1999 or 2000 and who have not paid their obligation or made arrangements to pay and cannot now pay the amount owed, may have all or part of the obligation suspended for one year.

If USDA determines they still cannot pay after one year, the suspension may be renewed, but not more than twice.  During the suspension period, the obligation will accrue interest at the federal borrowing rate.  About 3,300 SAAs have ended or will end in 1999 and 2000.