U.S. Department of Agriculture is set to provide approximately $123 million in additional, automatic financial assistance for farm loan program borrowers.
The funds are part of $3.1 billion for distressed farm loan borrowers in the Inflation Reduction Act, according to a March 27 news release. The funds are additional, automatic financial assistance for borrowers, building on financial assistance offered to borrowers under the same program in October.
"In too many cases, the rules surrounding our farm loan programs may actually be detrimental to helping a borrower get back to a financially viable path," Agriculture Secretary Tom Vilsack said in the news release. "As a result, some are pushed out of farming and others stuck under a debt burden that prevents them from growing or reacting to opportunities. Loan programs for the newest and more vulnerable producers must be about providing opportunity and tailored to expect and manage stumbles and hurdles along the way. Through this assistance, USDA is focusing on generating long-term stability and success for distressed borrowers."
The Inflation Reduction Act directs USDA to expedite assistance to distressed borrowers participating in direct or guaranteed loans administered by the department's Farm Service Agency, according to the release.
"For example, in the October payments, farmers that were 60 days delinquent due to challenges like natural disasters, the pandemic or other unexpected situations were brought current and had their next installment paid to give them breathing room," the news release said.
USDA in October provided about $800 million in initial relief to more than 11,000 delinquent direct and guaranteed borrowers, as well as approximately 2,100 borrowers who had their farms liquidated and still had remaining debt, according to the release. USDA plans case-by-case reviews of about 1,600 complex cases for potential initial relief payments, including cases of borrowers in foreclosure or bankruptcy.
The new round of relief starting in April is expected to include automatic financial assistance to qualifying Farm Loan Program direct loan borrowers who meet certain criteria, the release said. Qualifying borrowers can expected a letter detailing assistance as payments are made and distressed borrowers' eligibility is to be determined based on their current circumstances.
