IMPORTANT: Inflation Reduction Act - Initial Phase of Implementation

FOR IMMEDIATE RELEASE

Update: Inflation Reduction Act Initial Phase of Implementation

EAST POINT, Ga. - On Tuesday, October 18th the USDA announced its initial Phase of implementing the Inflation Reduction Act.

FEDERATION’S IRA POSITION

The Federation would like to thank USDA for listening to the concerns of our members. The Federation submitted recommendations on the urgent need for swift implementation of the IRA to the USDA leadership. However, it is important to note, that the Federation continues to pursue racial equity as prioritized by this administration.

Our commitment to standing in solidarity, supporting, and advocating on behalf of the 3,100 Black farmers as well as the 17,000 farmers of color promised debt relief last year is steadfast. The Federation will continue to work to protect these farmers from losing their farms, land, and livelihoods by assisting with the implementation of the IRA.

The Federation will continue to submit member-focused Public Comments garnered from our membership via strategic listening sessions and our member-based Advocacy Institute to further amplify our overall IRA Position for consideration in the ongoing implementation of IRA Sections 22006 & 22007.

USDA Public Comment

Dania Davy, FSC/LAF Director of Land Retention & Advocacy stated,

"Our members and partners were encouraged by the USDA leadership’s announcement that over 31,000 farmers will receive critical financial assistance as it reflects direct responsiveness to our calls for immediate implementation of the financial assistance provided under section 22006 of the Inflation Reduction Act (IRA) however, we remain committed to our requests that USDA prioritizesracial equity in the ongoing implementation of sections 22006 & 22007 of the IRA."

As of today, over 13,000 borrowers have already benefited from the resources provided under the Inflation Reduction Act.

·Approximately 11,000 delinquent direct and guaranteed borrowers had their accounts brought current. USDA also paid the next scheduled annual installment for these direct loan borrowers giving them peace of mind in the near term.

·Approximately 2,100 borrowers who had their farms foreclosed on and still had remaining debt have had this debt resolved in order to cease debt collections and garnishment relieving that burden that has made getting a fresh start more difficult.

USDA Press Release On Providing IRA Payments

In addition to the automatic assistance already provided, USDA has also outlined steps to administer up to an additional $500 million in payments to benefit the following distressed borrowers:

·USDA will administer $66 million in separate automatic payments, using COVID-19 pandemic relief funds, to support up to 7,000 direct loan borrowers who used FSA’s disaster-set-aside option during the pandemic to move their scheduled payments to the end of their loans.

·USDA is also initiating two case-by-case processes to provide additional assistance to farm loan borrowers. Under the first new process, FSA will review and assist with delinquencies from 1,600 complex cases, including cases in which borrowers face bankruptcy or foreclosure. The second new process will add a new option using existing direct loan servicing criteria to intervene more quickly and help an estimated 14,000 financially distressed borrowers who request assistance to avoid even becoming delinquent.

Executive Director Cornelius Blanding commented, "We continue to stand with USDA in carrying out the administration's vision of racial equity and are committed to the Federation's 55-year legacy and working with partners to ensure Black farmers, landowners, and communities are not left out of the American Dream."

MORE IRA INFORMATION

UDSA IRA Fact Sheet

WHAT IS RACIAL EQUITY?

Racial equity, according to the organization Race Forward, is the process of eliminating racial disparities and improving outcomes for everyone. It is the intentional and continual practice of changing policies, practices, systems and structures by prioritizing measurable change in the lives of people of color.

Everyone benefits when racial equity is upheld, regardless of the race of the person, because when equity is in the center of community life, citizens are allocated the resources and opportunities they need to create equal outcomes for all community members to thrive.

The Federation of Southern Cooperatives/Land Assistance Fund is a 55-year-old cooperative association of black farmers, landowners, and cooperatives.

Our mission is to be a catalyst for the development of self-supporting communities through cooperative economic development, land retention, and advocacy. We envision sustainable rural communities supported by a network of farmers, landowners, and cooperatives based on local control and ownership.

The Federation/Land Assistance Fund is a membership-based organization that assists limited resource farmers, landowners, and cooperatives across the Southern region with business planning, debt restructuring, marketing expertise, and a whole range of other services to ensure the retention of black-owned land and cooperatives as a tool for social and economic justice.

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