Farm Loans

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UNITED STATES DEPARTMENT OF AGRICULTURE

FARM SERVICE AGENCY FACT SHEET March 2016

Administrative Offset Debt Owed to Federal Agencies

Under law, delinquent debt owed to Federal 

agencies must be offset against any payments due 

from the Federal Government. The Debt Collection 

Improvement Act of 1996 (DCIA), effective 

April 26, 1996, was passed to increase collections 

of Federal non-tax debt.

The Farm Service Agency (FSA) is required to 

collect payments that otherwise would be made to 

producers/borrowers who owe Commodity Credit 

Corporation (CCC), or delinquent direct farm loan 

program debt, unless the borrower can present an 

acceptable plan to resolve the delinquency. FSA is 

also required to offset payments to guaranteed farm 

loan program debtors who received loans after 

July 20, 2001, if a final loss claim has been paid on 

a loan. Payments subject to offset are issued by the 

United States and include:

• Program payments;

• Tax refunds;

• Federal salary offset, including military pay;

• Federal retirement pay, including military 

retirement pay;

• Contract or vendor payments;

• Social Security, including Social Security 

Disability;

• Railroad retirement, other than tier two 

payments; and

• Black lung.

FSA is committed to working with producers/

borrowers to assist them in resolving any 

delinquency. Under certain circumstances direct 

farm loan program debt may be restructured, 

interest rates may be lowered and/or the debt may 

be written down. If the borrower has accepted a 

written offer from FSA to restructure the account, 

payments will not be offset. If the borrower 

presents an acceptable written plan that can be 

approved by FSA and will resolve the delinquency, 

the offset can be lifted. Guaranteed debtors can 

submit an offer directly to FSA to settle their 

Federal debt after a final loss claim has been paid.

All USDA payments due delinquent producers/

borrowers will be offset unless a statutory 

provision bars that action.

FOR MORE INFORMATION

For more information about FSA and its programs, 

visit your local FSA office or online at 

www.fsa.usda.gov. To find your local FSA office, 

visit http://offices.usda.gov.

___________________________________________

In accordance with Federal civil rights law and U.S. Department of 

Agriculture (USDA) civil rights regulations and policies, the USDA, 

its Agencies, offices, and employees, and institutions participating in 

or administering USDA programs are prohibited from discriminating 

based on race, color, national origin, religion, sex, gender identity (including gender expression), sexual orientation, disability, age, marital 

status, family/parental status, income derived from a public assistance 

program, political beliefs, or reprisal or retaliation for prior civil 

rights activity, in any program or activity conducted or funded by 

USDA (not all bases apply to all programs). Remedies and complaint 

filing deadlines vary by program or incident.

Persons with disabilities who require alternative means of communication for program information (e.g., Braille, large print, audiotape, 

American Sign Language, etc.) should contact the responsible Agency 

or USDA’s TARGET Center at (202) 720-2600 (voice and TTY) or 

contact USDA through the Federal Relay Service at (800) 877-8339. 

Additionally, program information may be made available in languages other than English.

To file a program discrimination complaint, complete the USDA 

Program Discrimination Complaint Form, AD-3027, found online at 

http://www.ascr.usda.gov/complaint_filing_cust.html and at any USDA 

office or write a letter addressed to USDA and provide in the letter 

all of the information requested in the form. To request a copy of the 

complaint form, call (866) 632-9992. Submit your completed form or 

letter to USDA by:

1) mail: U.S. Department of Agriculture Office of the Assistant

 Secretary for Civil Rights 1400 Independence Avenue, SW

 Washington, D.C. 20250-9410;

2) fax: (202) 690-7442; or

3) email: program.intake@usda.gov.

USDA is an equal opportunity provider, employer, and lender.