Sec. 12101. Assistance for certain farm loan borrowers
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Section 1005 of the American Rescue Plan Act of 2021 ( Public Law 117–2 ) is amended to read as follows: In addition to amounts otherwise available, there are appropriated to the Secretary for fiscal year 2022, out of amounts in the Treasury not otherwise appropriated, to remain available until September 30, 2031— such sums as may be necessary for the cost of payments under subsection (b); and $1,020,000,000 to provide payments or loan modifications or otherwise carry out the authorities under section 331(b)(4) of the Consolidated Farm and Rural Development Act ( 7 U.S.C. 1981(b)(4) ), using a centralized process administered from the national office, for Farm Service Agency direct loan and loan guarantee borrowers, focusing on borrowers who are at risk (as determined by the Secretary of Agriculture using factors that may include whether the borrower is a limited resource farmer or rancher, the amount of payments received by the borrower during calendar years 2020 and 2021 under the Coronavirus Food Assistance Program of the Department of Agriculture, and other factors, as determined by the Secretary).
The Secretary shall provide a payment in an amount up to 100 percent of the outstanding indebtedness of each economically distressed borrower on eligible farm debt. For each farmer and rancher with outstanding indebtedness on eligible farm debt that does not qualify for a payment under paragraph (1), the Secretary shall provide a payment that is equal to, subject to subparagraph (B), the lesser of— the amount of the outstanding indebtedness of the farmer or rancher on eligible farm debt; and $150,000.
A payment determined under subparagraph
(A)shall be reduced by the amount equal to the sum obtained by adding— the total of the payments received by the farmer or rancher during calendar year 2020 pursuant to the Coronavirus Food Assistance Program of the Department of Agriculture; and the total of the payments received by the farmer or rancher during calendar years 2018 and 2019 pursuant to the Market Facilitation Program of the Department of Agriculture. In this section: The term economically distressed borrower means a farmer or rancher that, as determined by the Secretary— was 90 days or more delinquent with respect to an eligible farm debt as of April 30, 2021; was 90 days or more delinquent with respect to an eligible farm debt as of December 31, 2020; operates a farm or ranch whose headquarters of operation, as determined by the Secretary, location is— in a county with a poverty rate of not less than 20 percent, as determined— in the 1990 or 2000 decennial census; or in the Small Area Income and Poverty Estimates of the Bureau of the Census for the most recent year for which the Estimates are available as of the date of enactment of the Act entitled An Act to provide for reconciliation pursuant to title II of S. Con. Res. 14 ; in a ZIP Code with a poverty rate of not less than 20 percent, as determined by the Secretary; or on land held in trust by the United States for the benefit of an Indian Tribe or an individual Indian; owes more interest than principal with respect to an eligible farm debt as of July 31, 2021; is undergoing bankruptcy or foreclosure or is in other financially distressed categories, as determined by the Secretary, as of July 31, 2021; received a Department of Agriculture disaster set aside after January 1, 2020; has restructured an eligible farm debt 3 or more times as of July 31, 2021; or has restructured an eligible farm debt on or after January 1, 2020. The term eligible farm debt means a debt owed to the United States by a farmer or rancher that was issued as a direct loan administered by the Farm Service Agency under subtitle A, B, or C of the Consolidated Farm and Rural Development Act (7 U.S.C. 1922 through 1970) and was outstanding or otherwise not paid as of December 31, 2020, or July 31, 2021. The amount of eligible farm debt with respect to a borrower shall be equal to the amount of eligible farm debt outstanding as of a date determined by the Secretary, but no sooner than the date of enactment of the Act entitled An Act to provide for reconciliation pursuant to title II of S. Con Res. 14 , plus the total of all loan payments on eligible farm debt made by the borrower in calendar year 2021. The term Secretary means the Secretary of Agriculture. The Secretary shall not enter into any loan agreement pursuant to this section that could result in disbursements after September 30, 2031 or any grant agreement pursuant to this section that could result in any outlays after September 30, 2031. .
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