By Chris Zoller, Ohio State University Extension Educator, ANR in Tuscarawas County
Beginning in April, USDA will provide approximately $123 million in additional, automatic financial assistance for qualifying farm loan program borrowers who are facing financial risk. Funding is through the Inflation Reduction Act (IRA) and builds on the same program announced in October 2022.
Like the program announced in October 2022, qualifying borrowers will receive an individual letter detailing the assistance as payments are made. Distressed borrowers’ eligibility for these new categories of automatic payments will be determined based on their present circumstances. More information about the new categories that make up the $123 million in assistance and the specific amount of assistance a distressed borrower receives can be found in this fact sheet, IRA Section 22006: Additional Automatic Payments, Improved Procedures, and Policy Recommendations.
USDA will provide information and training to program participants about the potential tax consequences of the funding program. USDA will also sponsor a webinar featuring farm tax experts to review the program and answer questions. Further information about tax implications of USDA program is available here: farmers.gov/taxes.
If you have further questions, please reach out to your local USDA Farm Service Agency office. If you are unsure where of the location of the nearest office, please use this tool: https://offices.sc.egov.usda.gov/locator/app.