Farm Service Agency

General Debtor 

Considerations

Debtors should consider the 

following parameters:

» Lump sum payment of debt 

is the preferred method of 

debtor repayment

» If a debtor is financially unable 

to pay a debt in one lump sum, 

FPAC Business Center may 

accept payment in regular 

installments. There are certain 

requirements which must be 

met (see below) before a legally 

binding installment agreement, also 

known as a repayment agreement, 

can be executed.

» The amount and frequency of 

installment payments should 

be sufficient to repay the debt 

within 3 years 

» The proposed payment schedule 

will be on a monthly, quarterly, 

semiannual, or annual basis

» The amount of each payment should 

be consistent and at least $50 per 

month or $600 per year, except in 

unusual circumstances

» Additional collection resources will 

be used by FPAC Business Center 

to validate a producer’s financial 

profile. This information may dictate 

the negotiated terms and conditions 

of the installment agreement.

Overview

Farmers and Ranchers who are indebted 

to Farm Service Agency (FSA) and/

or Commodity Credit Corporation 

(CCC) farm program overpayments are 

responsible for repayment of the debt and 

associated interest and charges. 

While lump sum payment of a debt is the 

preferred method of a debtor repayment, 

Farm Production and Conservation 

(FPAC) Business Center may negotiate 

an installment agreement with debtor(s) 

if a debtor(s) is financially unable to pay a 

debt. The debtor(s) must document their 

financial inability to pay the debt in one 

lump sum. 

Installment agreements will accrue late 

payment interest at a rate set by the 

Department of Treasury effective on the 

date the promissory note is established. 

The promissory note will accrue interest 

at this rate until such time the debt 

is paid in full, or the promissory note 

becomes delinquent. 

Negotiating a 

Promissory Note 

(Form CCC-279)

More 

Information

Interested debtors may 

call the Debt Management 

Customer Service Line 

800-247-6850. 

This fact sheet is for 

informational purposes 

only; other restrictions 

may apply. 

OCTOBER 2021 INSTALLMENT AGREEMENT

(continued)
USDA is an equal opportunity provider, employer, and lender.

NEGOTIATING A PROMISSORY NOTE (FORM CCC-279) 2

Other Terms and 

Conditions

» If a debtor requests a semiannual or annual installment 

schedule, a down-payment 

may be requested. The downpayment amount may range from 

5-10% of the total outstanding 

debt amount depending on the 

debtor’s circumstances. 

» Debtors participating in Farm 

Programs may be required to 

allow offset of program payments 

disbursed during the installment 

agreement period. 

» Security or collateral for deferred 

payments may be required in 

appropriate cases. 

Minimum 

Documentation 

Requirements

Written correspondence from the 

debtor(s) requesting an installment 

agreement. The correspondence must 

include (at a minimum):

» Debtor explanation justifying the 

inability to pay the debt in one 

lump sum 

» Requested frequency of 

payments (monthly, quarterly, 

semi-annually, annual)

» Requested installment amount 

(amount debtor(s) is financially 

able to pay)

» Signed and dated financial 

statement – The financial 

statement serves a twofold 

purpose; it must document the 

debtor’s inability to pay the debt 

in one lump sum and provide 

evidence that sufficient funds exist 

to make installment payments. 

For further information on what 

constitutes a financial statement, 

contact the Debt Management 

Services Line. 

farmers.gov