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Shared Appreciation Agreements on USDA Farm Loans (CRS Report for Congress)

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Release Date June 20, 2002
Report Number RS21145
Report Type Report
Authors Jerry Heykoop, Resources, Science and Industry Division
Source Agency Congressional Research Service
Summary:

Shared appreciation agreements are agreements between the U.S. Department ofAgriculture and borrowers who are unable to repay their debts. The agreements allowborrowers to have their debts forgiven temporarily and allow USDA to share in anyappreciation of the property at the end of the term. Disputes have arisen about theoriginal intent of Congress, with some borrowers suing in court to stop the U.S.Department of Agriculture from collecting payments. Recent regulatory changes haveattempted to aid farmers in fulfilling their agreements. The new farm bill contains a provision to allow borrowers to restructure the amounts due.
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