Stimulus Oct. 2022 Update: USDA announces $1 billion debt relief for 36,000 American farmers

October 19, 2022 Nitish shaw Stimulus Check, US Local News 0

American farmers

  The American federal government disclosed Tuesday a program that will supply $1.3 billion in debt relief for about 36,000 farmers who have fallen behind on loan amounts or face foreclosure.

The U.S. Department of Agriculture announced the farm loan relief program funded by $3.1 billion in the Inflation Reduction Act allocated toward assisting distressed borrowers of direct or guaranteed loans administered by the USDA. The law was passed by Congress and signed by President Joe Biden in August.

USDA provides loans

The USDA provides loans to about 115,000 farmers and livestock producers who cannot obtain commercial credit. Those who have missed payments, are in foreclosure, or are heading toward default will get help from the USDA. Financial hardships for farmers may be caused by diverse issues, including drought and transportation blockages.

“Through no fault of their own, our nation’s farmers and ranchers have faced incredibly tough circumstances over the last few years,” said Agriculture Secretary Tom Vilsack. “The funding included in today’s announcement helps keep our farmers farming and provides a fresh start for producers in challenging positions.”

About 11,000 farm borrowers outstanding on direct or guaranteed loan costs for 60 days or longer are accepting  automatic electronic payments to get them current on their loans.

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Each agriculturalists with a direct loan received about $52,000, and those with guaranteed loans received about $172,000. The total cost for this group is nearly $600 million.

Vilsack said that farmers who received this help will get a letter announcing them that their payments have been made and will remain current until their following annual fee is due in 2023.

Another $200 million has been used to immediately help 2,100 farm borrowers who still owed money and had their tax refunds and other resources taken by the U.S. Treasury after their loans had been foreclosed.

Vilsack said the funds would pay these farmers’ debts to give them a fresh start. The USDA said farmers in this category received an average of $101,000.

Another $571 million will be used to help several different groups, including:

  • —7,000 farmers who, during the COVID pandemic, delayed loan payments to the end of their loans. This will cost $66 million.
  • —1,600 farmers that face bankruptcy or foreclosure will get help on a case-by-case basis with individual meetings to assess their problems and find solutions at the cost of $330 million.
  • —14,000 financially distressed farm borrowers facing cash flow problems who ask for help to avoid missing a loan payment will receive additional assistance. Vilsack said these issues could be brought on by drought or by low levels on the Mississippi River, slowing barge traffic and causing grain transportation issues. Up to $175 million will be available for this program.
  • https://twitter.com/USDA/status/1580569661477130240
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The money announced Tuesday is the first round of payments designed to help farmers stay in business or re-enter farming.

The USDA said that the remainder of the $3.1 billion would help relax unnecessary loan restrictions and provide further assistance to be announced later.

USDA found farmers assisted by the program to be distressed borrowers hard hit by pandemic-induced market disruptions exacerbated by more frequent, more intense, climate-driven natural disasters, the USDA said.

President Joe Biden and his administration continue to endure criticism for enacting a program to forgive some college loans but some Republican politicians. The latter have criticized that the program did not answer questions about whether they support the farm loan help.

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The USDA also provided $31 billion to help nearly a million farmers offset lower sales, prices, and other losses due to the coronavirus pandemic in 2021 and 2022, the U.S. Government Accountability Office has said.

Source

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About Nitish shaw 238 Articles
An aspiring novelist and a random blogger, Nitish is also a porky-mouthed banter specialist when it comes to football (soccer), films, TV Series, History and socio-economic issues. He travels, indulges in music and plays outdoor sports to get his creative juices flowing. “There’s the scarlet thread of murder running through the colorless skein of life, and our duty is to unravel it, and isolate it, and expose every inch of it.”- Quote this, and you will be his favorite person for at least as long as the two of you can hold up the conversation.