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Sen. Gillibrand calls for direct relief to North Country small farmers hit hard by pandemic

Posted 8/4/20

U.S. Senator Kirsten Gillibrand (D-NY), member of the Senate Agriculture Committee is among a group of senators calling for direct relief for small farmers who have been hit hard by months of closed …

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Sen. Gillibrand calls for direct relief to North Country small farmers hit hard by pandemic

Posted

U.S. Senator Kirsten Gillibrand (D-NY), member of the Senate Agriculture Committee is among a group of senators calling for direct relief for small farmers who have been hit hard by months of closed restaurants, schools, and farmers markets.

In a letter sent to Senate leadership, the senators urged the Senate to include the Relief for America’s Small Farmers Act in the next coronavirus response package.

“The comprehensive legislation would provide economic relief for small farmers suffering from massive financial losses due to reduced demand and supply chain disruptions during the pandemic,” according to a news release from Gillibrand’s office. “Currently, farm bankruptcies are at an eight year high and family farmers are carrying historical high debt. The financial struggles of more than 30,000 New York farmers has only been exacerbated by the current crisis and many will be unable to sustain their operations without federal relief. The Relief for America’s Small Farmers Act will support the nation’s most vulnerable farmers by alleviating debt, keeping farms open, and fortifying the nation’s food supply.”

“The CARES Act does not go far enough to sustain small farms through this difficult time; they need urgent and direct loan forgiveness so they can continue maintaining operations, paying their workers, and keeping food on Americans’ tables,” Gillibrand said in a prepared statement. “This legislation will not only strengthen family farms but also bolster rural economies that have been devastated by this crisis. We must pass this legislation now so that we can keep small farmers in their homes and on their land. I will continue working with my colleagues to include the Relief for America’s Small Farmers Act in an upcoming relief package to ensure our farmers are not left behind.”

Family farms received minimal benefits through the SBA under the CARES Act and have struggled to access emergency federal farm aid allocated to USDA in the same coronavirus response package. Additional measures are needed to support small farms and keep them operating throughout the coronavirus pandemic and beyond, Gillibrand’s office said.

The Relief for America’s Small Farmers Act would directly address this crisis by providing a one-time debt forgiveness of up to $250,000, across three types of USDA FSA loans: Direct Farm Operating, Direct Farm Ownership, and Emergency Loans. All small farms with an average adjusted gross income of up to $300,000 for the previous five years will be eligible, regardless of their commodities. Additionally, while many debt relief programs exclude farmers from future benefits, the legislation would ensure that farmers who receive debt forgiveness or write-downs maintain their eligibility for further USDA Direct and Guaranteed loans.