The USDA has announced a program to provide $1.3 billion in debt relief for close to 40,000 farmers who are in arears with loan payments.  Funding will be provided from the $3.1 billion allocated under the Inflation Reduction Act approved by Congress and administered by USDA.

Secretary of Agriculture, Tom Vilsack stated, “Through no fault of their own, our Nation’s farmers and ranchers have faced incredibly tough circumstances over the last few years.”  He added, “The funding included in today’s announcement helps keep our farmers solvent and provides a fresh start for producers in challenging circumstances.”

Farmers receiving assistance are recognized as “distressed borrowers” impacted by pandemic-induced market disruptions or climatic events. Total assistance by the USDA to the farming community as result of COVID amounted to $31 billion in FY 2020 and 2021 combined according the U.S. Government Accountability Office.