A Shared Appreciation Agreement (SAA) is an agreement between the USDA and farmer borrowers, instituted when a borrower is severely delinquent on making payments on Farm Service Agency (FSA) real estate loans. Such an agreement allows for the forgiveness of a portion or all of the indebtedness, in return for the borrower sharing with USDA at the end of the term a portion of any appreciation in the farmer-owned real estate that served as collateral for the loan. SAAs were instituted as part of the Agricultural Credit Act of 1987 (P. L. 100-233) for the purpose of avoiding foreclosure due to the drop in land prices at that time.
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Shared Appreciation Agreement Wikipedia(Text) CC BY-SA