SPRINGFIELD, Ill. (WAND) — The U.S. Department of Agriculture has announced its final assistance for those distressed with direct and guaranteed farm loans in accordance with the Inflation Reduction Act, signed into law by President Biden.
The USDA said this legislation will help over 12,800 Farm Loan Program borrowers (FLP).
Around $300 million in assistance is available to help those farmers keep their land while continuing their farming practices.
“USDA has always been committed to standing by our nation’s farmers and ranchers, especially in their most challenging times,” said Agriculture Secretary Tom Vilsack.
Adding, “The final round of payments announced today under President Biden’s Inflation Reduction Act provides much-needed relief to more than 12,800 producers, helping them stay on their land and continue farming. At USDA, we are not only addressing immediate financial challenges but also working every day to build a stronger, more supportive loan system that ensures farmers have the tools they need to succeed now and into the future.”
The automatic assistance includes the following, according to the USDA:
Around $168.5 million, as of November 30, for outstanding delinquencies on qualifying direct loans. Including people who have received IRA 22006 assistance
There is around $5 million in payments for those with outstanding loans as of September 30
There is around $67.3 million available for payment of the next FLP direct loan installment on October 7 for borrowers who received help under IRA 22006, and it cannot be above the remaining balance.
Around $35 million of the money will go towards those who have restructured or who have accepted an offer to restructure between March 27, 2023, and the present day through Farm Service Agency (FSA.) This help will be equal to the amount of the next installment. For those who accepted an offer to restructure, their payment will be the same as the next installment and will not exceed the remaining amount owed.
There is $9 million available for those with outstanding direct Emergency Loans as of November 30.
$4.1 million of the assistance is for those with protective advances outstanding as of November 30, as well as those with qualifying guaranteed loans with protective emergency advances as of September 30.
$3.9 million of the money will go towards those with outstanding interest or whose interest exceeds their principal debt owed as of November 30
$1.8 million will go towards Economic Emergency Loans (EE) for those with EE loans and those with qualifying Consolidated Farm and Rural Development Act as of November 30
The remaining $109,00 is set to go towards any outstanding non-capitalized interest for all direct borrowers as of November 30
Who is eligible for a FLP payment is determined on a loan-by-loan basis according to the USDA
Those who are able to get help in multiple areas can only pick one assistance category to help them with one payment. The FLP direct and guaranteed borrowers who have a qualifying loan will be given the option that best helps them.
According to the USDA, those who qualify but are currently in bankruptcy will be given a case-by-case review. Those who qualified were told so in October 2022.
The FSA said it does not expect to have any extra money available for extra assistance after the assistance it is offering is issued. However, if it does, the FSA will make a prorated payment that is not above the remaining balance.
Farm loan borrowers may also want to check out the Distressed Borrower Set-Aside program. The USDA said this program helps those who qualify to install a full loan installment on certain loans with a .125% interest rate.
The department said this change is to expand borrowing opportunities.
There is also the loan assistance tool, which gives buyers a step-by-step interactive guide to finding loan opportunities for their business needs and understanding the application process.
There is also an online loan application, which is a guided interactive application offering an electronic signature, ability to attach tax return documents, a complete balance sheet, and farm operating plan.
There is also an online repayment feature, which saves people from having to call, mail, or visit a USDA Service Center.
The USDA added their loan paper application is only 13 pages versus the 29 it was previously.
There is also an online education hub with resources.
The USDA also mentioned the Distressed Borrowers Assistance Network, which helps financially distressed farmers and ranchers across the country.
The USDA said producers should contact their local FSA farm loan staff to ensure they understand their options.
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