USDA Funds Helping Keep Farmers on their Land

The USDA announced that distressed borrowers with qualifying USDA farm loans have already received $800 million in assistance to keep them on their farms. The funds are a part of the $3.1 billion in assistance provided through the Inflation Reduction Act. He says USDA and the Farm Service Agency are changing the way they deal with distressed borrowers to make sure producers can keep farming.

Vilsack; “In the past, that approach has been to monitor performance and, in the event that people were unable to make payments, the USDA would then go through the legal processes of collecting the debt. We’re going to focus on a more proactive approach to avoid those circumstances and situations and try to address and assist folks before they get to a point of no return.”

The assistance has provided immediate help for more than 13,000 distressed USDA farm loan borrowers. But Vilsack says there are a lot of other farmers in similar predicaments.

Vilsack; “One group is roughly 1600 borrowers who are 60 days or more delinquent, but who are now engaged in a bit more complicated circumstances. Either they’re in bankruptcy or they were already in foreclosure at the time that moratorium went into place, and we will be working with them on a case-by-case basis to figure out ways in which we can handle and deal with the delinquency that they find themselves and the circumstances that they find themselves in. We also know that there are about 14,000 borrowers in our loan portfolio who we suspect, in looking at and understanding their current circumstances, may be confronted with a cash flow challenge for a variety of reasons. So, we’ll be working on a case-by-case basis with those roughly 14,000 borrowers to assist them and to provide resources from the $500 million we’ve set aside so that they too have peace of mind.”

Deputy USDA Secretary Jewell Bronaugh says this relief is long overdue.

Bronaugh; “At-risk farmers across the country have needed a lifeline for far too long. As a former FSA State Executive Director, I know firsthand what happens to farmers who receive too little, too late, and that has implications that go well beyond just the loss of a farm operation, which is devastating enough. But the impact on that producer, his or her family and that personal intergenerational loss, the loss of multiple generations of a family commitment to stay on that land and to keep farming is why we make this commitment.”

More details on each of the assistance categories, including a downloadable fact sheet, are available on the Inflation Reduction Act webpage on

Related articles

Friday, December 2nd, 2022 Video and Audio Program

A busy week of trade and a volatile Friday session calls for a jam packed program to wrap up the week! First up, we are joined by DuWayne Bosse of Bolt Marketing to discuss the...

EPA Proposes RFS Volumes for 2023-2025 With Modest Boost for Conventional Ethanol; Not Everyone is Happy

The EPA is finally out with proposed Renewable Fuel Standard volumes for 2023 through 2025, and the ethanol industry is mostly pleased. “A clear pathway for sustainable growth” and an “upward trajectory” for clean...

NCBA Applauds Protect Farmers from the SEC ACT in Senate

The National Cattlemen’s Beef Association supports the Senate version of the Protect Farmers from the SEC Act, a companion bill to legislation introduced into the House of Representatives by Oklahoma Republican Frank Lucas. “The Securities...

USDA Expands Revenue Protection for Oat and Rye Producers

The country’s oat and rye producers can now benefit from revenue protection, a new crop insurance option available through the USDA. After listening to growers, the Risk Management Agency expanded the Small Grains Crop...

2022 Has Been a Challenge for Cattle Producers

Acknowledging every year has its ups and its down, Cameron Mulrony says 2022 was a challenging year for local cattle producers to say the least. Mulrony, the Executive Vice President of the Idaho Cattle Association...

Latest articles

%d bloggers like this: