The Farm Service Agency is now processing loan applications submitted during the government shutdown, offering deadline extensions, but keeping term limits firm.

According to the agency directive, any application that was post-marked or hand-delivered during the funding lapse, provided it included all required materials at that time, will now be processed as though it arrived on time. In cases where required documentation or follow-up was due during the shutdown and the deadline expired, FSA will send a new letter giving the applicant an additional 15 days to supply the missing information. The agency underlines that “no applicant will be penalised because of the lapse in funding.”

While this provides relief for producers who submitted paperwork during the blackout, there is a significant qualification: the memo stresses that term limits cannot be extended. That means if a loan was approved and obligated before the lapse in funding but could not be closed until afterward-and closing it later would push the borrower past the term limit-the applicant is no longer eligible. FSA spells out: “if a loan could not be closed before the restoration of funding and closing the loan after the restoration … will put the applicant over a term limit, then the applicant is not eligible.”

On servicing existing loans, the agency explains that during the funding lapse payments received from borrowers will be credited according to the date received or, when unknown, the post-mark date will apply. Borrowers whose payment due dates fell during the lapse and who did not make those payments are considered delinquent as of Nov. 13. In addition, accounts with payments due between Oct.1 and Nov.12 will be classified as 90 calendar days past due on Feb.11 of next year.

For professionals in agriculture finance, agribusiness lenders and producers, this announcement brings clarity on how the shutdown-related gap will be treated in terms of loan eligibility and servicing. For lenders working with FSA-guaranteed products and risk management frameworks tied to these loan programs, the memo provides needed guidance to align with internal credit review and term-limit compliance systems.

From a broader policy perspective, the move reflects the USDA’s intent to maintain capital access for farmers and ranchers, even in the face of short-term federal funding disruptions. Steering clear of punitive measures for applicants affected by the interruption helps stabilise the loan market in a high-input-cost environment, where timely access to credit often determines whether producers can plant, harvest or expand. When input costs for seed, fertiliser, fuel and labour are volatile, any disruption of credit lines can ripple through yields, commodity prices and supply-chain resilience.

Ag professionals and farm lenders should note two immediate action items:

• Ensure that any applications post-marked or hand-delivered during the funding lapse are flagged and processed per the memo’s directives.

• Review upcoming loan closings to verify that term-limits are not inadvertently violated, as the agency is strict about no extensions in those circumstances.

As the input cost environment remains challenging and commodity price volatility persists, the ability to access stable financing through the FSA’s direct and guaranteed loan channels remains a strategic asset for many producers. This announcement reinforces that access-and confirms that the FSA is proactively adapting its processes to account for the shutdown’s impact.

For communications teams in agribusiness and co-ops, this development offers an opportunity to reassure your producer members: demonstrate that credit access via the FSA remains intact, and highlight timelines and eligibility considerations clearly. Use messaging that emphasises continuity, compliance and preparedness.

In short: the FSA is back in business for loan processing, the paperwork gap is addressed, but term-limits remain non-flexible. Growers and lenders alike should align their workflows accordingly.