USDA release last $300 million for distressed farm loan borrowers

WASHINGTON — The U.S. Department of Agriculture will allocate the final $300 million in assistance to distressed direct and guaranteed farm loan borrowers under Section 22006 of the Inflation Reduction Act.

Over the past two years, USDA has assisted distressed borrowers in retaining their land and continuing their agricultural operations, the USDA said in a press release.

Since President Biden signed the Inflation Reduction Act into law in August 2022, USDA has provided approximately $2.5 billion in assistance to more than 47,800 distressed borrowers.

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The assistance announced this month is expected to provide $300 million in assistance to more than 12,800 distressed direct and guaranteed Farm Loan Programs borrowers.

This round of automatic assistance includes the following:

•$168.5 million for payments in the amount of any outstanding delinquencies on qualifying direct loans as of Nov. 30, 2024 for direct borrowers one or more days delinquent as of that date, and in the amount of any outstanding delinquencies, as of Sept. 30, 2024 on qualifying guaranteed loans of guaranteed borrowers one or more days delinquent or flagged for liquidation on a qualifying loan as of that date (including those who received prior IRA 22006 assistance).

•$5 million for payments in the amount of any outstanding delinquencies on qualifying guaranteed loans as of Sept. 30, 2024 for guaranteed borrowers who were delinquent as of Sept. 30, 2024 on a qualifying loan but by fewer than 30 days and were therefore not eligible for the assistance announced on Oct. 7, 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 Oct. 7, 2024, not to exceed the remaining balance.

•$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. This assistance will be equal to the amount of the next installment (first applied toward any delinquency) for all qualifying direct loans held by the borrower, not to exceed the remaining balance. For any borrowers who have accepted an offer to restructure, payment will be equal to the next installment for all qualifying direct loans post-restructure, not to exceed the remaining balance.

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•$9 million for the payment of outstanding direct Emergency Loans as of Nov. 30, 2024.

•$4.1 million in assistance for borrowers of qualifying direct loans with protective advances outstanding as of Nov. 30, 2024, and borrowers of qualifying guaranteed loans with protective or emergency advances as of Sept. 30, 2024. Protective advances are defined in 7 C.F.R. 761.2 and are those made consistent with 7 C.F.R. 765.203 or 762.149; emergency advances are those made consistent with 7 C.F.R. 762.146(a) (3). For direct loan borrowers, payments will be in the amount of the outstanding protective advance as of Nov. 30, 2024, where possible based on the structure of the account. For guaranteed loan borrowers, payments will be in the amount of the outstanding protective or emergency advance balance as of Sept. 30, 2024 where possible based on the structure of the account.

•$3.9 million for payment of outstanding interest for direct borrowers whose interest exceeds their principal debt owed as of Nov. 30, 2024.

•$1.8 million for payment of outstanding Economic Emergency loans for borrowers who have both EE loans and qualifying Consolidated Farm and Rural Development Act loans as of Nov. 30, 2024.

•$109,000 for the payment of outstanding non-capitalized interest for all direct borrowers as of Nov. 30, 2024.

FLP payment eligibility is determined on a loan-by-loan basis.