American Rescue Plan Debt Payments

According to APGov, the Biden administration’s efforts to implement The American Rescue Plan Act (ARPA) debt relief have been hampered by federal case rulings in three states. The Act 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 (Black/African American, American Indian, Alaskan Native, Hispanic/Latino, Asian American, or Pacific Islander) who has a qualifying loan with FSA.

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.

For more information on the case in the Northern District of Texas, where the order certified the case as a class action, visit: https://www.agri-pulse.com/articles/16127-federal-judge-in-texas-enjoins-debt-relief-payments-certifies-producer-classes.

For more information on the orders in Florida and Wisconsin, visit https://www.agri-pulse.com/articles/16089-judge-stops-payments-under-debt-relief-program

Source: American Pistachio Growers