Additional Inflation Reduction Act (IRA) Relief for Distressed Borrowers Facing Financial Risk

EAST POINT, GEORGIA,

March 30, 2023 - The U.S. Department of Agriculture (USDA) announced starting in April, it will provide $123 million in additional, automatic financial assistance for qualifying farm loan program borrowers. This amount is part of $3.1 billion provided through Section 22006 of the IRA.

The Federation of Southern Cooperatives/Land Assistance Fund (the Federation) commends USDA for listening to our members and other underserved farmers' experiences and concerns following the first phase of implementation of the IRA 22006 Financial Resources for Economically Distressed Borrower program.

The Federation continues to advocate for program implementation that improves racial equity as prioritized by this administration and is pleased to see USDA releasing these automatic payments that will provide more Black farmers with these critical economic resources to stay on their land and in production. While many of our members received financial resources during the first implementation phase last December, the Federation has continued to work closely with USDA leadership to identify opportunities for improvement; thus, we see this most recent announcement as the agency being responsive to our advocacy efforts on behalf of our members' ongoing needs.

Our commitment to supporting and advocating for Black farmers promised debt relief remains steadfast. The Federation will continue to work to protect these farmers from losing their farms, land, and livelihoods by providing feedback and recommendations and assisting with implementing the IRA.

The Federation will continue to gather and submit Black farmer-focused feedback to USDA obtained from our membership. We encourage members to contact their state office with any questions, comments, or concerns about IRA implementation. 

Read the full USDA press Release.

WHAT HAPPENS NEXT

• By the end of April, qualified distressed borrowers should expect to receive an eligibility letter from FSA informing them they will receive a payment.

• April 11th, 2023 | NOON EST: The Federation will hold a Federation Conversation LIVE update on the ongoing IRA 22006 Implementation with a special Q&A opportunity to address questions from the membership.

IRA DEBT RELIEF IMPLEMENTATION TIMELINE

March 27, 2023

• $123 million in additional, automatic financial assistance for qualifying farm loan program borrowers facing financial risk. Payments received are non-taxable.

October 2022

• USDA provided approximately $800 million: https://www.usda.gov/media/press-releases/2022/10/18/usda-provides-payments-nearly-800-million-assistance-help-keep in initial IRA assistance to more than 11,000 delinquent direct and guaranteed borrowers and approximately 2,100 borrowers who had their farms liquidated and still had remaining debt.
• USDA announced that it anticipated payments using separate pandemic relief funding totaling roughly $66 million on over 7,000 direct loans to borrowers who used the USDA Farm Service Agency’s disaster-set-aside option during the COVID-19 pandemic. The majority of these payments have been processed and USDA anticipates it will complete all such payments in April 2023.

MORE IRA INFO & RESOURCES

The Federation of Southern Cooperatives/Land Assistance Fund is a 56-year-old cooperative association of Black farmers, landowners, and cooperatives.

Our mission is to be a catalyst for the development of self-supporting communities through cooperative economic development, land retention, and advocacy. We envision sustainable rural communities supported by a network of farmers, landowners, and cooperatives based on local control and ownership.