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Emergency Farm Loans

When a twister, flood, or dry spell strikes, or a quarantine is imposed by the Secretary of Agriculture, or when other natural disasters occur, FSA's Emergency loan program is there to assist eligible farmers and ranchers restore and recuperate from sustained losses.

The Emergency loan program is activated when a natural disaster is designated by the Secretary of Agriculture or a natural catastrophe or emergency is declared by the President under the Stafford Act. These loans assist manufacturers who suffer certifying farm related losses directly triggered by the disaster in a county declared or designated as a main catastrophe or quarantine area. Also, farmers located in counties that are contiguous to the stated, designated, or quarantined location may get approved for Emergency loans.

Resources

Fact Sheet: Emergency Loan Program (PDF, 1.7 MB).

Fact Sheet: Emergency Disaster and Declaration Process (PDF, 631KB).

Other FSA Disaster Assistance Programs.

USDA Disaster Resource Center.

Direct Loan Making Handbook 3-FLP (PDF, 2.5 MB).

Access to FEMA Disaster Help and Resources.

Farmers.gov.


Application *

Download and finish the Emergency Loan Applications and Instructions:

* All FSA direct loan applications need the exact same basic types. Emergency loan demands have 2 extra types, the accreditation of catastrophe losses and loan provider verification that business banking support was denied.

When you consult with your FSA county Farm Loan Program staff, you might be asked to finish extra types based upon relevant loan program requirements for the loan type.

Emergency Loans Frequently Asked Questions

Loan Purposes

Emergency loan funds may be utilized to:

- Restore or replace vital residential or commercial property.

- Pay all or part of production expenses connected with the catastrophe year.

- Pay essential household living costs.

- Reorganize the family farming operation.

- Refinance certain non-real estate operating debts.


Eligibility Requirements

For production losses, a catastrophe year yield that is below the normal production yield of the crop, as identified by the Agency, is required. Losses to quality, such as receiving a minimized rate for flood harmed crops, might also be qualified for assistance.

In addition to the basic eligibility requirements all loan candidates need to satisfy, there are some extra criteria unique to the Emergency Loan program:

- the loan applicant need to be a recognized farmer and either the owner-operator or tenant-operator of the farm at the time of the disaster.

- loan applicants should mean to continue farming.

- loan candidates need to get composed declinations of credit from arranged business lending institutions- If the loan is greater than $100,000 and less than $300,000, just 1 letter is needed.

- If the loan is higher than $300,000, 2 letters of declination are needed.

- If the loan amount asked for is $100,000 or less, this requirement is identified on a case by case basis at the Agency's discretion.

Maximum Loan Limitations

The maximum loan quantity for an Emergency situation loan is $500,000 yet the quantity a loan applicant may get is limited to the real amount of production or physical loss brought on by the disaster. Physical loss loans are based upon the amount needed to change the lost residential or commercial property, such as saved grain, devices and animals.

Repayment Terms

Repayment terms are based on the useful life of the security, a loan candidate's payment ability, and the kind of loss involved. The repayment schedule will require at least 1 payment every year. Emergency loans for yearly operating costs should be repaid within 12 months, and not to exceed 18 months if an extended term is necessary for the production cycle of the agricultural product.

Rates of interest

Rates of interest are computed and posted the 1st of each month. The interest rate charged is constantly the lower rate in result at the time of loan approval or loan closing for the type of loan wanted.

Additional Information

We motivate you to contact your regional office or USDA Service Center for more information about our programs and the info you will require for a total application. You likewise must be able to find a listing in the telephone directory site in the section set aside for governmental/public companies under the U.S. Department of Agriculture, Farm Service Agency. Our regional FSA offices more than happy to help you.