WASHINGTON — The US Department of Agriculture (USDA) is investing an additional $250 million in automatic payments for farm loan borrowers under Section 22006 of the Inflation Reduction Act (IRA).

“The payments announced today help to ensure that more than 4,600 producers across the country will see another production season,” said Zach Ducheneaux, USDA Farm Service Agency (FSA) administrator. “Importantly, however, we’re not only addressing current crises. We’re also creating a more resilient and supportive loan system for the future.”

Approximately $235 million of the investment will support an estimated 4,485 delinquent direct and guaranteed borrowers who have not received prior IRA 22006 assistance, while $15 million will support an estimated 165 direct and guaranteed borrowers with Shared Appreciation Agreements.

USDA noted that borrowers who are already struggling could severely be impacted as loan servicing actions resume that were previously paused following the COVID-19 pandemic, such as Shared Appreciation Agreements.

With the inclusion of USDA’s newly announced investment, the agency has provided $2.4 billion in financial assistance to over 43,900 farmers since the IRA was enacted in August 2022.

USDA conducted an Economic Impact Analysis on the $2.2 billion in payments previously provided to Farm Loan Program borrowers. Key findings included the support of nearly 49,000 jobs through the payments, increased household income by $2.47 billion and a $3.56 billion contribution to the US gross domestic product.