Inflation Reduction Act Investments in FPAC Programs

On August 16, President Biden signed the Inflation Reduction Act (IRA) into law. It is a historic, once-in-a-generation investment and opportunity for the agricultural communities that USDA serves. The Inflation Reduction Act will help producers stay on the farm, prevent producers from becoming ineligible for future assistance, and promote climate-smart agriculture by increasing access to conservation assistance.

IRA Investments


Section 22006 Inflation Reduction Act provides $3.1 billion for USDA to provide relief for distressed borrowers with certain Farm Service Agency (FSA) direct and guaranteed loans and to expedite assistance for those whose agricultural operations are at financial risk. USDA has allocated up to $1.3 billion for initial steps to help distressed borrowers, which are underway now. This includes both automatic and case-by-case assistance, which USDA announced on October 18, 2022. Learn more about Inflation Reduction Act Assistance for Distressed Borrowers.

Meanwhile, Section 22007 of the Inflation Reduction Act provides $2.2 billion in financial assistance for farmers who have experienced discrimination in USDA’s farm lending programs. USDA recognizes the Department has not done enough historically to ensure all customers have equal access to its programs and services. This allows USDA to further take accountability for that history by adjusting its farm loan systems, processes, and policies. On October 13, 2022, USDA requested public comment on how this section of the law should be implemented. All farmers, ranchers, and forest landowners have the opportunity to help shape the program. Comments are due November 14, 2022. Learn more on this request for information.


Approximately $20 billion of Inflation Reduction Act funds will support USDA’s conservation programs within the Natural Resources Conservation Service. This includes:

  • $8.45 billion for the Environmental Quality Incentives Program
  • $4.95 billion for the Regional Conservation Partnership Program
  • $3.25 billion for the Conservation Stewardship Program
  • $1.4 billion for the Agricultural Conservation Easement Program
  • $1 billion for the Conservation Technical Assistance Program

These are oversubscribed programs that are well known to farmers and ranchers. This additional investment will help farmers and ranchers implement expanded conservation practices that reduce greenhouse gas emissions and increase storage of carbon in their soil and trees.

News & Resources

USDA continues to work on longer-term assistance and improving the way that USDA approaches borrowing and loan servicing. More information will be posted to this webpage as it becomes available. 

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