The Department of Agriculture is providing additional, automatic financial assistance for qualifying guaranteed Farm Loan Programs borrowers who are facing financial risk. The announcement is part of the $3.1 billion to help certain distressed farm loan borrowers provided through the Inflation Reduction Act.
Agriculture Secretary Tom Vilsack says, “The financial assistance included in today’s announcement will provide a fresh start for distressed borrowers with guaranteed farm loans and will give them the opportunity to generate long-term stability and success.” Since the Inflation Reduction Act was signed in August 2022, USDA has provided approximately $1.15 billion in assistance to more than 20,000 distressed borrowers as a part of an ongoing effort to keep borrowers farming.
The additional financial assistance will provide qualifying distressed guaranteed loan borrowers with financial assistance similar to what was already provided to distressed direct loan borrowers. Based on current analysis, the financial assistance will assist an estimated approximately 3,500 eligible borrowers, subject to change as payments are finalized.