US farmers in financial distress have been allocated almost $800 million (€812 million), the US Department of Agriculture (USDA) has confirmed today (Tuesday, October 18).
The funding is part of a $3.1 billion support package for distressed farm loan borrowers provided through the Inflation Reduction Act.
The legislation means that USDA’s Farm Service Agency can help farmers whose operations are facing financial risk through loan payments or debt resolution.
Over 13,000 farmers have already benefited from the resources provided under the act.
Around 11,000 farmers have had their debts cleared and their next loan installment paid by USDA.
Another 2,100 borrowers whose farms were foreclosed on and still owed money had their debts resolved allowing them to make “a fresh start”.
USDA is also set to allocate an additional $500 million in payments to assist farmers in more complex cases, including those facing foreclosure or bankruptcy proceedings.
The payments made by the department will be classed as income which is subject to tax.
Commenting on the funding US Agriculture Secretary Tom Vilsack said:
“Through no fault of their own, our nation’s farmers and ranchers have faced incredibly tough circumstances over the last few years.
“The funding included in today’s announcement helps keep our farmers farming and provides a fresh start for producers in challenging positions,” he added.
USDA provides access to credit to approximately 115,000 producers who cannot obtain sufficient commercial credit through direct and guaranteed farm loans.
In January 2021, the department suspended foreclosures and other adverse actions on direct farm loans due to the Covid-19 pandemic.
