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   USDA Announces Additional Assistance for Distressed Farmers Facing Financial Risk
   
   WASHINGTON, March 27, 2023 - The U.S. Department of Agriculture (USDA) today revealed that beginning in April it will supply approximately $123 million in extra, automatic financial assistance for qualifying farm loan program debtors who are dealing with monetary threat, as part of the $3.1 billion to assist distressed farm loan customers that was offered through Section 22006 of the Inflation Reduction Act (IRA). The announcement builds on monetary support provided to customers through the same program in October 2022.
   
   The IRA directed USDA to accelerate support to distressed customers of direct or guaranteed loans administered by USDA’s Farm Service Agency (FSA) whose operations deal with financial risk. For example, in the October payments, farmers that were 60 days overdue due to challenges like natural catastrophes, the pandemic or other unforeseen circumstances were brought existing and had their next installation paid to provide breathing room.
   
   “In a lot of cases, the rules surrounding our farm loan programs may really be damaging to assisting a customer get back to a financially feasible path. As an outcome, some are pressed out of farming and others stuck under a debt concern that prevents them from growing or responding to chances,” stated Agriculture Secretary Tom Vilsack. “Loan programs for the most recent and more susceptible manufacturers need to be about offering opportunity and tailored to anticipate and handle stumbles and obstacles along the way. Through this help, USDA is focusing on creating long-term stability and success for distressed debtors.”
   
   In October 2022, USDA supplied roughly $800 million in preliminary IRA support to more than 11,000 delinquent direct and ensured debtors and around 2,100 borrowers who had their farms liquidated and still had remaining debt. USDA shared that it would carry out case-by-case reviews of about 1,600 complex cases for prospective preliminary relief payments, including cases of debtors in foreclosure or insolvency. These case-by-case reviews are underway.
   
   At the exact same time in October 2022, USDA announced that it prepared for payments using separate pandemic relief funding totaling roughly $66 million on over 7,000 direct loans to customers who utilized the USDA Farm Service Agency’s disaster-set-aside option during the COVID-19 pandemic. Most of these payments have actually been processed and USDA anticipates it will finish all such in April 2023.
   
   New Assistance for Distressed Borrowers
   
   FSA plans to supply the brand-new round of relief starting in April to extra distressed customers. This will consist of around $123 million in automated monetary support for qualifying Farm Loan Program (FLP) direct loan borrowers who meet specific requirements. Similar to the automatic payments revealed in October 2022, qualifying customers will receive a specific letter detailing the help as payments are made. Distressed customers’ eligibility for these brand-new classifications of automatic payments will be identified based upon their situations since today. More details about the new categories that comprise the $123 million in support announced today and the specific quantity of help a distressed borrower receives can be found described in this fact sheet, IRA Section 22006: Additional Automatic Payments, Improved Procedures, and Policy Recommendations.
   
   To continue to ensure producers know relief potentially available to them, all manufacturers with open FLP loans will receive a letter detailing a new opportunity to receive support if they took specific amazing procedures to avoid delinquency on their FLP loans, such as handling more financial obligation, offering residential or commercial property or cashing out pension. The letter will provide information on eligibility, the specific kinds of actions that might qualify for support, and the process for obtaining and offering the documents to look for that support.
   
   These actions become part of a procedure USDA announced in addition to the October payments that is concentrated on helping debtors unable to make their next set up installation. Earlier this year, all debtors need to have gotten a letter detailing the procedure for seeking this kind of assistance even before they become delinquent. Borrowers who are within 2 months of their next installation might seek a cashflow analysis from FSA utilizing a current balance sheet and operating strategy to identify their eligibility.
   
   Tax Resources
   
   USDA will continue to work with the Department of Treasury to assist borrowers understand the prospective tax ramifications from the invoice of an IRA payment, including that alternatives might be offered to possibly avoid or reduce any tax problem sustained as a result of getting this financial support.
   
   In early April, USDA will send a particular set of revised tax documents, instructional products and resources to borrowers that received help in 2022, including a link to a webinar hosted by a group of farm tax experts to offer education on the options available. USDA can not provide tax suggestions and motivates borrowers to consult their own tax professional, however FSA is providing educational products for customers to be knowledgeable about the options. USDA has tax-related resources readily available at farmers.gov/ taxes.
   
   Improved Procedures and Policy Recommendations
   
   FSA is settling modifications to its policy handbooks to get rid of unneeded obstacles, improve loan making and loan maintenance and offer more versatility on how loans are structured to take full advantage of the opportunities for debtors. Additional details on those changes can be discovered in the linked truth sheet and are the start of a more comprehensive set of procedure enhancements. The reality sheet also supplies info on the 8, no-cost legislative proposals consisted of in the 2024 President’s Budget that are created to enhance the debtor experience.
   
   USDA touches the lives of all Americans each day in a lot of favorable ways. In the Biden-Harris Administration, USDA is transforming America’s food system with a higher concentrate on more resistant regional and regional food production, fairer markets for all producers, making sure access to safe, healthy and healthy food in all communities, building new markets and streams of income for farmers and manufacturers utilizing environment smart food and forestry practices, making historical investments in infrastructure and tidy energy capabilities in rural America, and dedicating to equity across the Department by removing systemic barriers and developing a workforce more representative of America. For more information, go to www.usda.gov.