Relief for America’s Small Farmers Act
Small-scale and historically underserved farmers have received minimal benefits from the Small Business Administration and the recent stimulus packages during the coronavirus pandemic. These farmers are accustomed to dealing with risks associated with production agriculture, but the COVID-19 pandemic presents risk factors that demand an extraordinary response. At present, only farmers who have regular employees on payroll are eligible for the Small Business Administration Economic Injury Disaster Loans.
The Rural Coalition has been working with Senator Gillibrand and Representative Sean Patrick Maloney in crafting the Relief for America’s Small Farmers Act to provide small-scale producers with real debt forgiveness necessary to survive the pandemic. Representative Maloney introduced H.R. 6883 with four cosponsors on May 1st and Senator Gilibrand introduced S. 3602 on May 5th with three cosponsors. These bills would provide immediate direct relief to small farmers with a one-time debt forgiveness of up to $250,000.
Passage of this Act would expediently and effectively support our food systems and farmers who put food on our tables!
The House cosponsors of H.R. 6683 are HERE
The Senate cosponsors of S. 3602 are HERE
MORE INFORMATION
The Relief for America’s Small Farmers Act would sustain the essential economic and social functions of family farms and the hundreds of thousands of main street businesses they support in a manner that does not upset overall farm spending or policy implementation. It instructs the Secretary of Agriculture to forgive farm loan debt in a manner that stabilizes the farm operations of historically disadvantaged and other small farmers and ranchers and allows them to adapt the restructured markets they will have to navigate in the future.
Provides immediate direct relief to small farmers to alleviate their crushing debt
With a one-time debt forgiveness of up to $250,000 on Farm Service Agency Direct Farm Operating Loans, Direct Farm Ownership Loans, and Emergency Loans, including loans in default, the bill ensures that farmers who receive debt forgiveness or write-downs maintain their eligibility for further USDA Direct and Guaranteed loans.
Protects our most vulnerable farmers.
While farmers of all sizes are struggling, it is our small farmers who are being hit the hardest. Farmers with an average adjusted gross income of $300,000 or less over the previous 5 years will be eligible for this debt relief, including farmers who have had to sit out farm seasons during that time. The bill provides a one-year window for farmers to apply and farmers must continue to actively farm for at least 2 years after receiving the loan forgiveness. Accepting the debt forgiveness would not cause a farmer or rancher to incur tax consequences.