Farm Groups Thankful for ‘Generational’ Debt Relief Assistance

Agricultural organizations have expressed appreciation for the recent debt relief assistance announced by the U.S. Department of Agriculture (USDA). The relief provided has been made possible by the Inflation Reduction Act (IRA). Nearly $800 million has already been distributed to producers with direct or guaranteed loans administered by USDA’s Farm Service Agency (FSA).

“Let’s be clear – this debt relief is going to help keep family farms in business, not just for this generation but for generations to come,” said NFU President Rob Larew. “It’s promising to see how USDA is implementing provisions of the Inflation Reduction Act that will help thousands of distressed loan borrowers. Today’s announcement is the result of years of advocacy and leadership and is a big step toward improving the way USDA approaches lending. For farmers and ranchers who have been taking it on the nose the last few years, this is welcome news.”

More than 13,000 borrowers have already benefited from assistance provided through IRA. Farm Credit Council operates as a lender to farmers and ranchers across the country. President and CEO Todd Van Hoose also said the most recent announcement was welcome news. “Farm Credit lenders will work closely with USDA and FSA to ensure this debt relief provides the intended assistance to distressed borrowers.”

Debt assistance offered through USDA has also helped approximately 2,100 borrowers get a fresh start after having their farms foreclosed on. Agriculture Secretary Tom Vilsack said the support that has already been provided is just the first step of an ongoing process.

“This relief is a critical step to stabilize farms and farm families at particular financial risk, including small- and medium-scale and diversified farmers, especially those historically underserved by USDA,” National Sustainable Agriculture Coalition Interim Policy Director Mike Lavender said in a statement. “This announcement creates the opportunity for these farmers and ranchers to begin building generational wealth and investing in the future.”