The U.S. Department of Agriculture announced the release of nearly $130 million in extra financial aid to qualifying farm loan program borrowers in financial peril.
USDA has obligated nearly $130 million in additional financial assistance to qualifying farm loan program borrowers as part of the $3.1 billion provided through Section 22006 of the Inflation Reduction Act to help distressed farm loan borrowers, according to a May 1 news release.
“Through the Inflation Reduction Act, Congress directed USDA to deliver financial assistance to distressed farm loan borrowers as quickly as possible, and that is what we are delivering to help producers across the country stay on their land," Secretary of Agriculture Tom Vilsack said in the release.
The USDA provided approximately $1.1 billion in immediate assistance to more than 20,000 distressed borrowers since the IRA was signed by President Joe Biden in August 2022, including the payments announced May 1, the release reported. Borrowers who received these automatic payments include Farm Service Agency direct loan borrowers whose interest exceeded principle owed on outstanding debts, borrowers who remained delinquent up to 60 days past due as of Sept. 30, 2022, and borrowers who had a recent restructure between Feb. 28, 2020, through March 27, 2023.
The automatic payments are intended to help eligible borrowers address financial risks and alleviate economic stress caused by natural disasters, trade disruptions and other unexpected events, the release said. The USDA is committed to supporting distressed borrowers and ensuring they have access to the resources they need to recover from financial hardship and continue to contribute to the nation's agricultural industry.
"USDA is hard at work to provide our most vulnerable producers the opportunity to generate long-term stability and success," Vilsack added, according to the release. "Our goal is to make sure we provide producers access to the tools they need to help get back to a financially viable path and ultimately succeed as thriving agricultural businesses.”
