The government has already canceled $800 million of debts for US farmers, and says that's 'just the first step' in its loan relief program
The USDA has canceled $800 million in debts for 13,100 farmers, it said Tuesday.
The Inflation Reduction Act included $3.1 billion in assistance for distressed farm loan borrowers.
The USDA said Tuesday's announcement was "just the first step" in aiding distressed farmers.
This came from the $3.1 billion in assistance for distressed farm loan borrowers included in the Inflation Reduction Act, which President Joe Biden signed in August.
The USDA said that it had provided the $800 million in relief so far to around 13,100 farmers who had taken loans, cancelling around $61,000 of debt on average.
Most of these were direct and guaranteed borrowers who were 60 or more days late on their loan and who had their debts resolved by automated payments from government.
The USDA also spent just over $200 million resolving the debt of around 2,100 farmers whose farms had been foreclosed on and still had remaining debt.
"This first round of payments is focused on 'stopping the bleeding' and helping to ensure distressed farm loan borrowers can stay in or re-enter the business of agriculture and continue feeding their communities," the department said in a fact sheet, adding that Tuesday's announcement was "just the first step."
The USDA said it would start processing up to $500 million more in debt relief for up to 23,000 more borrowers.
"Through no fault of their own, our nation's farmers and ranchers have faced incredibly tough circumstances over the last few years," Agriculture Secretary Tom Vilsack said in a statement. "The funding included in today's announcement helps keep our farmers farming and provides a fresh start for producers in challenging positions."
The Inflation Reduction Act also includes $2.2 billion in financial assistance for farmers, ranchers, and forest landowners who have experienced discrimination in USDA's farm lending programs.
