U.S. Rep. Bob Etheridge (D-Lillington) announced today that U.S. Department of Agriculture Secretary Tom Vilsack has placed a temporary suspension on Farm Loan Program foreclosures for up to 90 days while the agency reviews the loans.
The suspension was effective as of Friday, May 1, 2009.
Etheridge asked Vilsack for such a suspension. Halts on these foreclosures will help farmers in North Carolina who have struggled during the economic crisis, including poultry producers who lost their contracts in late 2008 after Pilgrim’s Pride closed its plant in Siler City.
“This decision keeps farmers on their farms and in their homes, and helps to prevent our agriculture-based economy from facing an additional challenge during the recession,” said Etheridge. “This moratorium on foreclosures is a good first step toward helping our farmers who have been impacted by the economic crisis.”
Etheridge has worked tirelessly with both USDA and the White House to achieve this moratorium on foreclosures. Etheridge has met with Vilsack, and other USDA and White House staff to seek a solution that will aid N.C. poultry growers who have lost their contracts due to the economic downturn. Etheridge is continuing to examine other more long-term options.
During the review period, accounts will not be foreclosed by the Farm Service Agency. The USDA will use this time to review loans to ensure that FSA borrowers have been provided with all civil rights and appropriate servicing options under law and will give farmers more time to recover from the economic challenges they face.
Farmers should contact the county FSA office with any questions.