By Leah Douglas
(Reuters) – The U.S. Department of Agriculture has distributed over $2.1 billion to greater than 39,000 farmers in financial misery by a mortgage reduction program funded by the Inflation Reduction Act, the company stated.
The reduction comes as the federal government forecasts a pointy fall in U.S. farm revenue this 12 months with many commodity crop costs hitting multi 12 months lows.
The IRA, handed in August 2022, allotted $3.1 billion to the reduction program, which permits USDA to make mortgage changes or funds for farmers at monetary threat who maintain direct and assured loans by the company.
USDA loans can assist farmers pay for land, gear, feed, and different bills.
The company has additionally obtained almost 60,000 functions for help underneath one other IRA-funded program for farmers who skilled discrimination in USDA farm lending practices, stated Agriculture Secretary Tom Vilsack at a Senate Agriculture Committee listening to on Wednesday.
The USDA is hoping to distribute the discrimination funds this summer season, Vilsack stated. The company is working with third-party directors to judge the functions.
For many years, farmers of coloration and ladies have alleged that they’re handled unfairly in USDA’s mortgage applications.
“This goes back over decades. The financial assistance is long overdue,” stated Senator Raphael Warnock on the listening to, who advocated for the IRA program.
A 2022 examine discovered that USDA mortgage discrimination contributed to Black farmers shedding roughly $326 billion price of land within the twentieth century.
The IRA included $2.2 billion for the discrimination fee program.