Number: RS21145
Title: Shared Appreciation Agreements on USDA Farm Loans
Authors: Jerry Heykoop, Resources, Science and Industry Division 
Abstract: 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.
Pages: 5
Date: June 20, 2002