The U.S. Department of Agriculture (USDA) has provided an additional $130 million in financial assistance to distressed farm loan borrowers in the country.
USDA provides $130 million in financial assistance to farm loan borrowers
This follows the provision of $3.1 billion provided through the Inflation Reduction Act (IRA) to help those who are struggling financially. The automatic payments are available to Farm Service Agency (FSA) direct loan borrowers whose interest exceeds the principle owed on outstanding debts, borrowers who have a balance up to 60 days past due, and borrowers who have recently restructured their loans. The assistance is aimed at helping vulnerable producers generate long-term stability and success.
In May, the FSA will begin accepting individual distressed borrower assistance requests from direct loan borrowers who have missed a recent installment or are unable to make their next scheduled installment. All FSA borrowers should have already received a letter detailing the process for seeking assistance even before they become delinquent.
Borrowers who are within two months of their next installment may seek a cashflow analysis from FSA to determine their eligibility using a recent balance sheet and operating plan
Additionally, FSA borrowers who have taken certain extraordinary measures to avoid delinquency on their loans, such as selling property or cashing out retirement or college savings accounts, will receive a letter detailing a new opportunity to receive assistance.
The USDA has stated that it will provide regular updates on its progress in deploying this funding to farmers who need it. As the USDA learns more about the types of situations financially distressed farmers are facing, the Department will continue to update borrowers and the public about new eligibility criteria. The goal is to provide producers with access to the tools they need to help get back to a financially viable path and ultimately succeed as thriving agricultural businesses.
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