The U.S. Department of Agriculture has disbursed more than $2.1 billion to assist over 39,000 farmers facing economic challenges through a loan relief initiative funded by the Inflation Reduction Act, as announced by the agency.
This relief initiative comes amidst government projections of a significant decline in U.S. farm income this year, exacerbated by many commodity crop prices plummeting to multi-year lows.
Enacted in August 2022, the Inflation Reduction Act allocated $3.1 billion for the relief program, empowering the USDA to provide loan adjustments or payments to farmers facing financial distress and holding direct and guaranteed loans through the agency.
USDA loans play a pivotal role in assisting farmers with essential expenses such as land acquisition, equipment purchases, feed procurement, and other operational costs.
A separate program funded by the Inflation Reduction Act, aimed at aiding farmers who have encountered discrimination in USDA farm lending practices, has garnered nearly 60,000 applications, according to Agriculture Secretary Tom Vilsack during a Senate Agriculture Committee hearing.
Vilsack expressed the USDA’s intention to disburse the discrimination-related funds during the summer, with the agency collaborating with third-party administrators to assess the applications.
Historically, farmers from minority communities and women have raised concerns about unfair treatment in USDA loan programs, with allegations spanning decades. Senator Raphael Warnock, a proponent of the Inflation Reduction Act program, emphasized the long-overdue nature of the financial assistance provided.
A study conducted in 2022 revealed that USDA loan discrimination significantly contributed to Black farmers losing an estimated $326 billion worth of land during the 20th century.
The Inflation Reduction Act includes $2.2 billion designated for the discrimination payment program, underlining the government’s commitment to addressing historical injustices and supporting equitable access to agricultural resources.