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The final rule will make changes in the regulations to be consistent with provisions of the Agriculture Improvement Act of 2018 (2018 Farm Bill). Most of the changes made by the rule were self-enacting and have already been implemented administratively. In addition, the rule will make the changes for equitable relief and the State Agricultural Mediation Program, which are the only changes that were not self-enacting. The changes increase statutory loan limits or improve the various loan programs (direct farm ownership loans, direct and guaranteed loans, microloans, and emergency loans) and will relieve some restrictions to participation or otherwise encourage participation.

In addition, the final rule will change the regulations as required in response to the United Kingdom Financial Conduct Authority’s decision to discontinue the London Interbank Offered Rate (LIBOR) interest rates effective December 31, 2021.  The FSA Farm Loan Programs regulations in 7 CFR part 762 references LIBOR when limiting the maximum interest rate lenders may charge their guaranteed loan customers at closing.  FSA must update this limit before the LIBOR data is unavailable.  FSA is also simplifying the maximum interest rate rules to make them more understandable for lenders and more practical for FSA to monitor.  In addition, FSA is clarifying that guaranteed loan applicants must not be ineligible for assistance due to disqualification resulting from a Federal Crop Insurance violation according to 7 CFR part 718.  This restriction already applies to FSA guaranteed loan applicants; however, FSA is adding this to 7 CFR 762 for consistency with the limitation in 7 CFR 764.101 applying to FSA’s direct loan applicants.