Mike Pearson tells listeners about some changes in the financing offered through the USDA that will benefit borrowers.

Over 100,000 growers use some sort of financing from the USDA. Last week, they announced big changes.

The USDA announced the biggest changes in years to the lending programs. The changes are aimed at giving borrowers more choices on repaying loans as low commodity prices take hold. The changes apply to all loans financed by the Farm Service Agency. These include direct ownership loans, operating loans, emergency loans and guaranteed loan program.

The biggest change was in the requirement to collateral for loans. FSA used to require 150 percent security to gain loans but now it's reduced to 125 percent.

The idea is that farmers will be able to secure financing for something like equipment without using their home for collateral.

Another change is in the low interest set aside program for financially stressed borrowers and allows them to defer one installment at a reduced interest rate. This allows a simple and faster way to handle a financially stressed producer.

The USDA is also expanding access to flexible retirement plans by creating a better cash flow up front.

Another change is in the application for loans process. It has been streamlined online and is easier for producers.

Farm Progress America is a daily look at key issues in agriculture. It is produced and presented by Mike Pearson, farm broadcaster and host of This Week in Agribusiness.