(NAFB.com) – USDA’s updates to the Farm Service Agency’s Farm Loan Programs are officially in effect. These changes are designed to increase financial flexibility for agricultural producers, allowing them to grow their operations, boost profitability, and build long-term savings. USDA says the new rules will mean a low-interest installment set-aside program. Financially distressed borrowers can defer up to one annual loan payment at a reduced interest rate. There are also flexible repayment terms. New repayment options give borrowers the ability to increase their cash flow and build working capital reserves, allowing for long-term financial planning. The new rules also mean reduced collateral requirements. FSA lowered the amount of additional loan security needed for direct farm loans, making it easier for borrowers to leverage their existing equity without putting their personal residence at risk. USDA says the new rules give farmers and ranchers better tools to manage their operations and get long-term financial stability.