USDA announces additional $250 million in financial assistance for distressed farm loan borrowers

WASHINGTON, D.C. — The U.S. Department of Agriculture (USDA) announced an additional $250 million in automatic payments for distressed direct and guaranteed farm loan borrowers under Section 22006 of the Inflation Reduction Act. This significant step continues USDA’s commitment to keeping farmers and ranchers financially viable and support for agricultural communities.

Over the past two years, USDA acted swiftly to assist borrowers in retaining their land and continuing their agricultural operations. Since President Biden signed the Inflation Reduction Act into law in August 2022, the USDA has provided approximately $2.4 billion in assistance to more than 43,900 distressed borrowers.

“USDA continues to invest in the future of producers through our loan portfolio. These ongoing investments made possible by the Inflation Reduction Act come on the heels of critical Farm Service Agency Loan Reforms that became effective last week,” said Zach Ducheneaux, USDA Farm Service Agency (FSA) Administrator. “The payments announced today help to ensure that more than 4,600 producers across the country will see another production season. Importantly, however, we’re not only addressing current crises. We’re also creating a more resilient and supportive loan system for the future.”