FSA Expands Use of Evaluations and Older Appraisals in Farm Lending

Summary

The USDA’s Farm Service Agency (FSA) has issued a final rule, effective October 1, 2026, that expands the use of real estate evaluations and older appraisals in certain farm-loan transactions. The rule permits evaluations in qualifying transactions up to specified thresholds and allows certain direct-loan appraisals to be reused for up to 36 months when market and property conditions support continued reliance. While the changes are intended to reduce costs and processing times, they may reduce some FSA appraisal assignments and shift valuation work toward non-USPAP evaluations. The rule also raises questions about the qualifications and competency standards for individuals preparing evaluations, an issue the Appraisal Institute plans to monitor as FSA implements the changes.