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The American Rescue Plan Act (ARPA) 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 (FSFL) 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 120% payment represents the full cost of the loan to include 100% toward loan balances as of January 1, 2021, and the 20% reimbursement 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 on the process and the individual debt payment amount will be reviewed with the borrower prior to final processing.
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.

Eligible Borrowers

Eligible borrowers include those 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.

Form AD-2047

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.

Eligible Loans

Eligible loans are those:

Made directly by FSA, including Farm Storage Facility Loans, Direct Farm Ownership Loans, Farm Operating Loans, including Microloans and Youth Loans, Emergency Loans, Conservation Loans, and Soil and Water Loans; and

Guaranteed by FSA and made by an approved lender, including Farm Ownership Loans, Farm Operating Loans, and Conservation Loans.

Both delinquent and current loans are eligible. Debts associated with these types of loans that have been referred for offset or collection are also eligible.

Certain USDA loans are not eligible, including Marketing Assistance Loans and Rural Development loans. Also, loans from commercial lenders such as banks, credit unions or Farm Credit institutions that do not include a FSA guarantee are not eligible.

Eligible Loans

Made directly by FSA, including Farm Storage Facility Loans, Direct Farm Ownership Loans, Farm Operating Loans, including Microloans and Youth Loans, Emergency Loans, Conservation Loans, and Soil and Water Loans; and

Guaranteed by FSA and made by an approved lender, including Farm Ownership Loans, Farm Operating Loans, and Conservation Loans.

Both delinquent and current loans are eligible. Debts associated with these types of loans that have been referred for offset or collection are also eligible.

Certain USDA loans are not eligible, including Marketing Assistance Loans and Rural Development loans. Also, loans from commercial lenders such as banks, credit unions or Farm Credit institutions that do not include a FSA guarantee are not eligible.

USDA Service Centers are locations where you can connect with Farm Service Agency, Natural Resources Conservation Service, or Rural Development employees for your business needs. Enter your state and county below to find your local service center and agency offices. If this locator does not work in your browser, please visit offices.usda.gov.

Visit the Risk Management Agency website to find a regional or compliance office or to find an insurance agent near you.