Last $300M Auto Aid for Farm Loan Borrowers Released
TL/DR –
The U.S. Department of Agriculture (USDA) has announced the last allocation of about $300 million under Section 22006 of the Inflation Reduction Act to distressed borrowers of direct and guaranteed farm loans. This final round of payments will bring the total assistance provided since the Act was signed into law by President Biden in August 2022 to approximately $2.5 billion for over 47,800 distressed borrowers. Agriculture Secretary Tom Vilsack stated that this aid will help over 12,800 producers retain their land and continue farming, and the USDA continues to work to build a more supportive loan system for farmers.
USDA Announces $300M Farm Loan Assistance Package
The U.S. Department of Agriculture (USDA) is set to provide approximately $300 million in distressed Farm Loan Programs assistance, impacting over 12,800 direct and guaranteed farm loan borrowers. This is part of the USDA’s relentless dedication to supporting farmers and ranchers, especially during challenging times.
Agriculture Secretary Tom Vilsack’s Statement
Agriculture Secretary Tom Vilsack emphasized the vital role of this aid in helping farmers retain their land and continue their agrarian activities. This final round of payments serves both as immediate financial relief and part of the USDA’s commitment to build a more supportive loan system for farmers.
Breakdown of the Assistance Allocation
The assistance includes several provisions such as $168.5 million for outstanding direct and guaranteed loan delinquencies, $67.3 million for Farm Loan Programs direct loan installments, $35 million for restructured direct loan installments, $9 million for direct Emergency Loans, and $4.1 million towards protective advances, among others.
Farm Loan Programs Eligibility
Eligibility for Farm Loan Programs payment is determined on a loan-by-loan basis. Distressed borrowers with multiple direct or guaranteed loans might receive assistance under several categories. Any distressed borrowers in bankruptcy will be addressed using a case-by-case review process.
Improvements to Farm Loan Programs
USDA’s Farm Service Agency (FSA) has recently implemented significant changes to Farm Loan Programs. One noteworthy update is the Distressed Borrower Set-Aside program which allows qualifying borrowers to defer a full loan installment at a reduced interest rate. Other improvements include tools to streamline and automate the loan application process, such as the Loan Assistance Tool and the Online Loan Application.
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