FCA urges help for hurricane victims, offers regulatory relief
As the North Carolina Agriculture Department said that crop losses had hit $1.1 billion, Farm Credit Administration Chairman Dallas Tonsager on Thursday urged Farm Credit System institutions to work with borrowers who have been affected by Hurricane Florence and also offered member institutions help if they have a hard time complying with Farm Credit regulations.
FCA said system institutions can alleviate the stress of borrowers affected by natural disasters in several ways:
▪ Extending the terms of loan repayments
▪ Restructuring borrowers’ debt obligations
▪ Easing some loan documentation or credit-extension terms for new loans to certain borrowers
“In times of natural disaster, our regulations give system institutions flexibility in providing disaster relief,” Tonsager said in a news release. “We encourage institutions to use this flexibility to help borrowers get back on their feet following disasters like this one.”
Tonsager noted that commodities hardest hit are tobacco, cotton, poultry and hogs.
“Losses for producers of sweet potatoes and peanuts may also be significant, but the extent of the damage to these commodities is not yet known,” he said.
Tonsager said the disaster may also impair the ability of system institutions to comply in a timely way with regulatory reporting and publishing requirements, and said officials should contact the director of FCA’s Office of Examination if they need relief.