View as Webpage

Taxes

Independent experts have shared information they have produced that may be helpful in understanding Federal tax and benefits requirements. USDA does not endorse information provided by outside parties but is providing links to resources for your own consideration. 

Financial assistance received in this program is part of your gross income, for tax purposes. For some individuals, there may be a requirement to pay self-employment taxes, too. See https://www.irs.gov/newsroom/frequently-asked-questions-about-usdas-discrimination-financial-assistance-program. Individuals who get financial assistance will also get an IRS Form-1099 showing the amount of money they have received. 

For more information on how DFAP financial assistance may affect your tax bill, including how to report the award and whether you have to pay self-employment tax, see https://extension.usu.edu/ruraltax/dfap. 

USDA cannot tell you if you will owe taxes, because every individual's circumstances are different. USDA recommends that you speak with a tax professional. USDA has partnered with Southern Extension Risk Management Education Center, the National Farm Income Tax Extension Committee and other tax experts across the country to provide general information resources regarding USDA program awards and agricultural taxes. These resources are available online at https://farmers.gov/taxes, https://ruraltax.org/, and https://agftap.org/. 

Benefits

Will DFAP financial assistance affect your eligibility for other benefits? 

Maybe. 



• Your USDA DFAP award will NOT affect your eligibility for public benefits that have no income or asset tests—for example, most types of Medicare and Social Security. 
• For public benefits that do have income or asset tests—for example, Supplemental Security Income (SSI), Medicaid, Supplemental Nutrition Assistance Program (SNAP) in some states, VA pension benefits, housing subsidies (e.g., Section 8 or other rent below market value), and others—your USDA DFAP award MAY affect eligibility. How much will depend on what benefits you get, your other income and assets, the amount of your DFAP award, and where you live. 
• USDA has partnered with the National Health Law Program (NHeLP) and the National Legal Aid & Defender Association (NLADA) to provide information and guidance to DFAP recipients who receive public benefits. 
• You can find more information—including state-specific material— online at https://www.nlada.org/USDA-DFAP/award-recipients including where and how you can get individualized answers to questions.  

NOTE: USDA does not officially endorse resources produced by independent experts, but they are provided for your consideration. Everyone’s situation is different. Be sure to talk to an attorney or advocate knowledgeable in these matters for specific advice. For more information call the DFAP Call Center at

1-800-721-0970. 

We acknowledge that the program is not designed to and will not attempt to compensate applicants comprehensively for actual economic losses. Rather, the program will provide financial assistance to applicants who have experienced discrimination in USDA’s farm loan programs. 

FSA has a significant initiative underway to streamline and improve Farm Loan Programs to improve access to capital. We encourage you to explore some FSA tools on farmers.gov. We’ve also heard from many of you that you may want to work with a trusted organization to learn more and we want to share with you some educational information that FarmRaise is providing so you can learn from a trusted partner. 

Farm Loan Assistance Tool 

 Learn about the farm loans that might be right for you, check your eligibility, and get instructional help with the application forms. 

Apply for an FSA Loan 

 We have simplified our loan application. Access a secure online portal where you can complete your application and submit it for processing.  

Find Your Local Service Center 

USDA Service Centers are locations where you can connect with Farm Service Agency, Natural Resources Conservation Service, or Rural Development employees for your business needs. 

Educational Material from Our Partner 

FSA is partnering with FarmRaise to provide an educational hub. The hub offers several, easily navigated farm loan programs how-to videos designed to

introduce producers to FSA’s many farm loan programs options and guide them through the application process.

You can learn more at https://www.farmraise.com/usda-fsa. 

Beware of Scams

As an important reminder, there is no requirement to provide payment to a lawyer or anyone else in order to receive your DFAP award. DFAP will never call you to request banking information, or other personally identifiable information over the phone. Beware of anyone pressuring you to submit additional paperwork. Be sure that the post office has any updates or corrections to your address by updating your information here: https://www.usps.com/manage/forward.htm. To get advance notice from the post office about what mail you should be expecting each day, sign up for their Informed Delivery Service here: https://www.usps.com/manage/informed-delivery.htm

The next time you can expect to hear from the DFAP program is when checks are mailed to recipients, expected summer 2024. If you are concerned that someone is attempting to scam you – report it to the call center (see below).

Program Questions

The Discrimination Financial Assistance Program call center is still open. Call now if you have questions related to the program, benefits, or application status. 

The Discrimination Financial Assistance Program call center (1-800-721-0970) will remain open until after program payments. Operating hours will be from 8 a.m. ET to 8 p.m. ET on weekdays, with English- and Spanish-speaking agents available. You can also email questions to info@22007apply.gov. Your confirmation ID is helpful to retrieve your application status but not required.  

As a reminder, the Farm Service Agency (FSA) is not managing DFAP processes or decision-making. USDA is required by statute to work with nongovernmental entities to administer the program and is doing so through the selected National Administrator and Regional Hubs. Farm Service Agency field office staff have no role in DFAP and will not be able to assist you with information regarding the status of your application, other than to suggest that you call the DFAP Call Center at 1-800-721-0970.