WASHINGTON — The US Department of Agriculture (USDA) announced an additional $123 million in automatic financial assistance to farmers.

Beginning in April, qualifying farm loan program borrowers facing financial risk will be eligible to receive funding through Section 22006 of the Inflation Reduction Act (IRA), which was allotted a total of $1.3 billion.

“In too many cases, the rules surrounding our farm loan programs may actually be detrimental to helping a borrower get back to a financially viable path,” said Agriculture Secretary Tom Vilsack. “As a result, some are pushed out of farming and others stuck under a debt burden that prevents them from growing or reacting to opportunities. Loan programs for the newest and more vulnerable producers must be about providing opportunity and tailored to expect and manage stumbles and hurdles along the way. Through this assistance, USDA is focusing on generating long-term stability and success for distressed borrowers.” 

The recently announced assistance builds on the same program in October 2022. At that time, USDA provided about $800 million to over 11,000 delinquent direct and guaranteed borrowers and approximately 2,100 borrowers who had their farms liquidated and still had remaining debt.

Farmers will be considered for the second round of assistance based on circumstances today. More information on criteria for assistance can be found through a USDA Farm Service Agency fact sheet.

USDA added that it will continue to work with the Department of Treasury so borrowers can understand the potential tax implications from the receipt of an IRA payment, including options that may be available to potentially avoid or alleviate tax burdens incurred through this financial assistance.