USDA officials want farmers to know that the deadline for a special loan assistance program is fast approaching. The Inflation Reduction Act of 2022 included a provision to help borrowers who have taken extraordinary measures to continue making their Farm Service Agency loan payments. Those borrowers have until Dec. 31 to apply for assistance.

“We know that farmers are facing some challenges, and at USDA our goal is to help make sure we can keep farmers farming and provide a fresh start for producers who might be in a challenging situation,” Deputy Agriculture Secretary Xochitl Torres Small says.

According to USDA statistics, around 86,000 farmers are working to repay loans each year. Section 22006 of the Inflation Reduction Act allocated $3.1 billion to help distressed borrowers. Approximately $1.8 billion of that has gone to an estimated 32,000 borrowers who had fallen behind on their FSA loan installment payments.

This latest program assists borrowers who have remained current on their loans but took extraordinary measures to do so. Those measures could include things like taking out a loan on a home, or getting a second, higher interest loan to make the FSA payments.

Approved applicants will receive direct deposit funds to help offset some of those additional costs. Torres Small says people who have worked hard to keep their loan payments current through difficult times deserve help. However, USDA won’t be able to help if they don’t know who they are. That’s why the agency wants to get the word out that relief is available.

“All of us rely on farmers taking that loan out. All of us rely on that to be able to keep the system going to keep producing food,” Torres Small says. “That’s why these payments are so crucial for all of us to keep our food system going and support the hardworking farmers who keep feeding us no matter how hard these challenges are.”