The U.S. Department of Agriculture (USDA) has announced a substantial financial assistance program, providing about $208 million to aid farmers struggling with loans. This initiative is part of the broader Inflation Reduction Act, which includes $3.1 billion to assist distressed farm loan borrowers, aligning with the President's Investing in America agenda.
In a move to prevent foreclosures, the USDA plans to allocate around $80 million to address delinquencies for an estimated 210 borrowers with guaranteed loans due for liquidation as of November 30, 2023. Approximately $128 million will be provided to support nearly 1,120 borrowers with outstanding direct Emergency Loans as of the same date.
Tom Vilsack stressed the USDA's dedication to maintaining farmers on their lands, contrasting the current strategy with past practices during financial crises. The USDA is actively developing more options to prevent foreclosures, urging borrowers and lenders to explore all available program options.
The Inflation Reduction Act has already facilitated the provision of around $1.7 billion in immediate assistance to over 30,000 distressed borrowers since August 2022, indicating the USDA's commitment to long-term improvements in loan servicing.
Adjustments to payments will be considered for borrowers who have already received assistance under previous announcements. The USDA also continues to entertain individual assistance requests from direct loan borrowers grappling with cash flow issues or those who have implemented extraordinary measures to prevent loan delinquency. These requests must be received by December 31, 2023.
As with all USDA Inflation Reduction Act assistance, payments are subject to taxation. Payments exceeding $600 will be reported to the IRS, and borrowers will be issued a 1099 form by FSA. Borrowers are encouraged to seek advice from tax professionals regarding any assistance received.
Source : wisconsinagconnection