Factsheet – Printable Version

On Oct. 18, 2022 USDA announced that distressed borrowers with qualifying farm loans would receive financial assistance.  To learn more, read the announcement


  • Payments are automatic.  There is no need to work with a third-party such as an attorney or an accountant to qualify or sign up for this program.  Contact your local FSA office for more information.
  • Recipients will need to file a tax return to comply with IRS regulations if their payments exceed $600. All recipients will need to file a federal income tax return reporting this payment as income, regardless of their current income level, land status, current employment status, and even if they have not filed an income tax return before. Failure to file a return with the correct income included could result in additional amounts owed to the IRS for interest and penalties.
  • To learn more about the potential tax implications of USDA program payments please visit www.famers.gov/taxes and ruraltax.org . These webpages will continue to be updated with resources on the tax consequences of Section 22006 such as fact sheets and informational webinars.
  • On August 16, 2022, President Joseph Biden signed into law the Inflation Reduction Act of 2022 (IRA). In addition to the distressed borrower relief provisions this legislation repealed Section 1005 of the American Rescue Plan Act (ARPA). As a result, information previously available concerning Section 1005 is now obsolete. For those USDA customers who believe they have experienced discrimination, IRA Section 22007 provides $2.2 billion in funding that will be administered separately. Additional information will be announced by the Department.


The farmer and rancher financial relief is viewed as a program payment and the funds create a taxable event.  Impacted borrowers should expect to receive a 1099-G early next year.  The amount listed on the form represents taxable income to the farmers.   The Agricultural Finance, Tax, and Asset Protection (AgFTAP) public site is now live, and we are in the process of inviting state contacts to the program.  As noted in the training, AgFTAP seeks to enhance farmer and rancher ability to understand and navigate the farm business tax and asset protection strategies for their operations. To learn more about the program and its collaborators visit the AgFTAP portal, https://agftap.org/. Also please note the 1099 resource which is recently loaded up on the portal.


If you have specific tax questions related to this financial relief, feel free to reach out to Adam and J.C.  In terms of the portal, we hope to open up the “log in” site on November 1st to the public.  We hope to start inviting state contacts into the portal next week which will allow you to start registering and/or promoting your training prior to the public launch.