Approximately 4,650 financially distressed farmers who owe on USDA direct and guaranteed loans will receive government assistance. The USDA provided about $2.4 billion in aid, including the $250 million just announced to 43,900 distressed borrowers with funding from the 2022 climate, healthcare and tax law.

The new funding targets borrowers who did not previously receive assistance. The money would be split into $235 for delinquent loans and $15 million for borrowers with shared appreciation agreements on their loans. Farm Service Agency administrator Zach Ducheneaux said the assistance would help these producers see another production season.

The USDA will pay the amount of outstanding delinquencies as of September 30 for farmers with direct loans. There are different courses of action for shared appreciation agreements depending on whether the agreement has matured or not.

Rules that took effect on September 25 allow the USDA to allow more flexibility in repayment terms for producers and reduce the collateral required when they borrow money. The USDa is the lender of last resort to credit-worthy producers who can’t get financing elsewhere. It offers direct and guaranteed loans for operating costs and the purchase of farmland.

Read more on funding for distressed producers here.