The USDA announced on Tuesday that borrowers with qualifying USDA farm loans have received nearly $800 million in assistance, as part of the $3.1 billion assistance package in the Section 22006 Inflation Reduction Act (IRA). The USDA expedited these funds to distressed borrowers whose operations face financial risk. U.S. Ag Secretary Tom Vilsack noted in the release that farmers and ranchers have faced incredibly tough circumstances due to no fault of their own over the last several years. He says this funding keeps farmers farming and gives a fresh start for producers in challenging positions.
As of October 18, over 13,000 borrowers have received benefits from the resources provided through IRA. Approximately 11,000 delinquent borrowers had their accounts brought current, and 2,100 borrowers who had their farms face foreclosure had their debt resolved in order to cease debt collections and garnishment.
Moving forward, USDA has outlined steps to administer up to an additional $500 million in payments to benefit the distressed borrowers who used FSA’s disaster-set-aside option during the pandemic to move their scheduled payments to the end of their loans. Additionally, two case-by-case processes are being established that will assist with delinquencies from 1,600 complex cases and help an estimated 14,000 borrowers who request assistance to avoid becoming delinquent.
View the full USDA release here.
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