Loan Payments for Socially Disadvantaged Farmers

Posted on June 5, 2021 by Taylor in Farming Resources, Funding, News, Policy, Politics // 0 Comments

USDA to Start Issuing Loan Payments for Socially Disadvantaged Farmers in June

In an effort to redress decades of racial discrimination, the U.S. Department of Agriculture (USDA) will start issuing debt relief payments to eligible farmers in June, the agency announced last week.

The relief was authorized in March by the American Rescue Plan, a $1.9 trillion pandemic response package. According to the legislation, the USDA Farm Service Agency (FSA) will pay up to 120 percent of direct and guaranteed loan outstanding balances as of January 1, 2021, for farmers and ranchers who are Black, Indigenous, Hispanic/Latinx, Asian American, or Pacific Islander.

Eligible direct loan borrowers will receive debt relief letters from FSA in the mail on a rolling basis, beginning the week of May 24. Information for guaranteed loan borrowers will be available within 120 days. If you’re uncertain of your demographic designation on file at FSA, you can contact your local service center to verify your classification on record. If an update or correction is needed, you may either fill out USDA Form AD-2047 or work with your local service center to update your record, including race and ethnicity.

How to Participate in Loan Payments for Socially Disadvantaged Farmers

Eligible Direct Loan borrowers will begin receiving debt relief letters from FSA in the mail on a rolling basis, beginning the week of May 24. Information for Guaranteed Loan borrowers will be available within 120 days.

After reviewing closely, eligible borrowers should sign the letter when they receive it and return to FSA. FSA employees will assist borrowers with their questions free of charge and will help producers complete any required documents. USDA will collaborate with community-based organizations and universities on outreach, technical assistance, and providing borrowers with access to financial, legal, and tax planning services. Details about how to request a meeting with FSA are in each offer letter.

If you’re uncertain of your demographic designation on file at FSA, you can contact your local service center to verify your classification on record. If an update or correction is needed, you may either fill out USDA Form AD-2047 or work with your local service center to update your record, including race and ethnicity.