# Relief for America's Small Farmers Act

This bill would forgive farm loans for small farmers who borrowed money directly from the U.S. Department of Agriculture. Essentially, it would wipe away what these farmers still owe on their loans, giving them a fresh financial start.

The bill targets farmers who are struggling financially and have been actively farming the land they borrowed money for. To qualify, a farmer's average income over the past five years would need to be $300,000 or less, which covers most small to mid-sized farming operations. The loans eligible for forgiveness are the three main types the USDA offers: farm ownership loans (used to buy or improve farmland), operating loans (used to cover yearly farming expenses), and emergency loans (used during disasters or crises). However, the loans must have been taken out before March 2020, so this doesn't cover more recent borrowing.

There's a cap on how much forgiveness any single farming operation can receive—a maximum of $250,000 per farm. Farmers would need to apply within one year of the bill becoming law, and they'd have to promise to keep actively farming for two more years after receiving the forgiveness. The bill also includes an important tax benefit: farmers won't have to pay income taxes on the forgiven amount, which is a significant advantage since loan forgiveness is normally treated as taxable income. Additionally, receiving this forgiveness won't hurt farmers' ability to get future USDA loans, so they won't be penalized for accepting help.

Relief for America's Small Farmers Act

Maloney, Sean Patrick

Relief for America's Small Farmers Act This bill provides loan forgiveness of up to $250,000 for certain borrowers who are actively engaged in farming, have an average annual adjusted gross income of $300,000 or less over the previous five years, and have certain Department of Agriculture farm loans. The loan forgiveness is subject to the condition that the applicable borrower must continue to be actively engaged in farming for at least two years after receiving such forgiveness.