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The U.S. Department of Agriculture (USDA) recently announced approximately $300 million in assistance to help distressed direct and guaranteed farm loan borrowers under Section 22006 of the Inflation Reduction Act. Over the past two years, USDA acted swiftly to assist distressed borrowers in retaining their land and continuing their agricultural operations. This is expected to provide assistance to over 12,800 distressed direct and guaranteed Farm Loan Programs (FLP) borrowers.
This round of automatic assistance includes approximately $168.5 million for payments in the amount of any outstanding delinquencies on qualifying direct loans as of Nov. 30, 2024. It also includes $5 million for payments in the amount of any outstanding delinquencies on qualifying guaranteed loans as of Sept. 30, 2024, $67.3 million for payment of the next installment due on all FLP direct loans for borrowers that received direct borrower delinquency assistance under IRA 22006 announced on Oct. 7, 2024, $35 million for payment in the amount of the next installment due on qualifying direct loans for borrowers that restructured or who have accepted an offer to restructure, a qualifying direct loan between March 27, 2023, and today through primary loan servicing available through FSA, along with $9 million for the payment of outstanding direct Emergency Loans as of Nov. 30, 2024.
Distressed borrowers may get assistance in multiple categories if they have multiple qualifying loans. Click here to learn more.