Democratic senators file bill to forgive up to $250,000 in USDA debt owed by farmers with incomes under $300,000

Resentment of the debt-relief measure for Black farmers could spur a new proposal by five Democratic senators that would forgive up to $250,000 in debts small farmers owe the federal government. The prime sponsor, Sen. Kirsten Gillibrand of New York, who had a similar bill last year, "said she would try to include debt relief in the upcoming infrastructure bill," Chuck Abbott reports for Successful Farming. 

"The proposal comes three months after Congress approved $4 billion to pay off money owed by socially disadvantaged farmers" to the Department of Agriculture or to banks with USDA loan guarantees," Abbott notes. "One of the cosponsors of the new debt relief bill, Sen. Cory Booker of New Jersey, was a leader in the push for loan forgiveness for minority farmers. Some white farmers have filed suit against that program, saying it is unconstitutional." Other sponsors are Bernie Sanders of Vermont, Jeff Merkley of Oregon, and Ron Wyden of Oregon.

About 40,000 farmers with USDA debt would meet the bill's criteria of an average adjusted gross income under $300,000, Abbott reports: "If all got the maximum relief of $250,000, the program would cost $10 billion. The debt relief would be nontaxable. Farmers would have one year to apply for forgiveness and would be obliged to stay in agriculture for two years if they receive relief."