Debt Payments for Socially Disadvantaged Producers

Debt Payments for Socially Disadvantaged Producers

The American Rescue Plan Act Section 1005 includes provisions for USDA to pay up to 120% of loan balances, as of January 1, 2021, for Farm Service Agency (FSA) Direct and Guaranteed Farm Loans and Farm Storage Facility Loans to any Socially Disadvantaged producer who has a qualifying loan with FSA. This includes producers who are one or more of the following: Black/African American, American Indian, Alaskan Native, Hispanic/Latino, Asian American, or Pacific Islander. The American Rescue Plan Act uses Section 2501 of the Food, Agriculture, Conservation, and Trade Act of 1990 as the definition of Socially Disadvantaged farmers and ranchers. 

The 120% payment represents the full cost of the loan to include 100% toward loan balances as of January 1, 2021, and the 20% portion is available for tax liabilities and other fees associated with payment of the debt. Any payments by borrowers made since January 1 will be reimbursed in full. 

How to Participate

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 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.

Congressman Thompson ANNOUNCES $200,000 In Grant Funds To The Mississippi Association Of Cooperatives And Tri County Agricultural Cooperative

Congressman Bennie Thompson and MAC

Article By: benniethompson.house.gov

BOLTON, MISSISSIPPI – Today, United States Representative Bennie G. Thompson (D-MS) announced Agriculture Deputy Secretary Krysta Harden awarded $200,000 in grant funds through the Small Socially Disadvantaged Producer Grant Program to the Tri County Agricultural Cooperative and the Mississippi Association of Cooperatives to help small, socially disadvantaged agricultural producers expand their operations and create jobs. The program funds technical assistance and other services to help producers develop new markets and business opportunities.

  • Tri County Agricultural Cooperative – $200,000 grant; To help socially disadvantaged agricultural producers develop diversified farms and utilize production and management strategies that will enhance their long-term viability.
  • Mississippi Association of Cooperatives – $200,000 grant; To provide technical assistance tools such as personal and business record-keeping, business planning, and marketing assistance.

For more information about Tri County Agricultural Cooperative contact Robert Gates, President at 662-578-7875 and Ben Burkett, State Coordinator for the Mississippi Association of Cooperatives at (601) 944-0592.