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  • Create Date January 17, 2024
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Recommendations for Accounting for FSA-Assisted Payments

Even though the Guidelines documents produced by the Farm Financial Standards Council are extensively reviewed on a continual basis, issues and matters sometimes arise that are outside the “normal” financial accounting transactions typical for agricultural producers. One such issue is accounting for USDA debt assistance and loan forgiveness programs. Examples include the Assisted Payments to Distressed Farm Loan Borrowers due to the Federal Inflation Reduction Act – Section 22006.

FFSC offers the following recommendations on financial accounting for selected debt assistance / loan forgiveness programs focused on direct Farm Service Agency (FSA) / FSA Guaranteed loans. This guidance does not address the possibly complex tax consequences of how these payments are taxed. FFSC recommends discussion with your tax professional for updated tax information and guidance.