Agricultural producers now have more time to repay Marketing Assistance Loans (MAL) as part of the U.S. Department of Agriculture’s implementation of the Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020. The loans now mature at 12 months rather than nine, a flexibility available for most commodities.
Spring is the season when most producers have the biggest need for capital, and many may have or are considering putting commodities under loan, said USDA officials. Extending the commodity loan maturity affords farmers more time to market their commodity and repay their loan at a later time.”
Producers now have up to 12 months to repay their commodity loans. The maturity extension applies to nonrecourse loans for crop years 2018, 2019 and 2020. Eligible open loans must in good standing with a maturity date of March 31, or later or new crop year (2019 or 2020) loans requested by Sept. 30. All new loans requested by September 30, will have a maturity date of 12 months following the date of approval.
The maturity extension for current, active loans will be automatically extended an additional three months. Loans that matured March 31 have already been automatically extended by USDA’s Farm Service Agency (FSA).