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Emergency Farm Loans
When a twister, flood, or dry spell strikes, or a quarantine is enforced by the Secretary of Agriculture, or when other natural catastrophes take place, FSA's Emergency loan program is there to assist qualified farmers and ranchers restore and recuperate from continual losses.
The Emergency loan program is triggered when a natural disaster is designated by the Secretary of Agriculture or a natural disaster or emergency situation is stated by the President under the Stafford Act. These loans help manufacturers who suffer certifying farm related losses directly brought on by the disaster in a county stated or designated as a primary catastrophe or quarantine area. Also, farmers located in counties that are contiguous to the declared, designated, or quarantined area may qualify 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 Forms *
Download and complete the Emergency Loan Applications and Instructions:
* All FSA direct loan applications require the same standard forms. Emergency loan demands have 2 additional kinds, the accreditation of catastrophe losses and lender verification that commercial banking assistance was denied.
When you consult with your FSA county Farm Loan Program personnel, you might be asked to finish additional types based upon appropriate loan program requirements for the loan type.
Emergency Loans Frequently Asked Questions
Loan Purposes
Emergency loan funds might be used to:
- Restore or replace important residential or commercial property.
- Pay all or part of production costs connected with the catastrophe year.
- Pay important household living expenditures.
- Reorganize the household farming operation.
- Refinance particular non-real estate operating financial obligations.
Eligibility Requirements
For production losses, a catastrophe year yield that is listed below the typical production yield of the crop, as identified by the Agency, is required. Losses to quality, such as getting a minimized rate for flood harmed crops, might also be qualified for support.
In addition to the general eligibility requirements all loan candidates should meet, there are some extra requirements distinct to the Emergency Loan program:
- the loan candidate must be a recognized farmer and either the owner-operator or tenant-operator of the farm at the time of the catastrophe.
- loan candidates need to plan to continue farming.
- loan applicants should get written declinations of credit from organized commercial loan provider- If the loan is higher than $100,000 and less than $300,000, only 1 letter is needed.
- If the loan is greater than $300,000, 2 letters of declination are required.
- If the loan quantity requested is $100,000 or less, this requirement is figured out on a case by case basis at the Agency's discretion.
Maximum Loan Limitations
The optimum loan quantity for an Emergency situation loan is $500,000 yet the amount a loan candidate might receive is restricted to the real quantity of production or physical loss triggered by the disaster. Physical loss loans are based on the amount required to change the lost residential or commercial property, such as kept grain, equipment and livestock.
Repayment Terms
Repayment terms are based upon the useful life of the security, a loan candidate's repayment capability, and the kind of loss included. The payment schedule will need at least 1 payment every year. Emergency loans for annual business expenses should be paid back within 12 months, and not to exceed 18 months if an extended term is required for the production cycle of the agricultural product.
Rate of interest
Rates of interest are determined and published the 1st of every month. The interest rate charged is always the lower rate in effect at the time of loan approval or loan closing for the type of loan wanted.
Additional Information
We encourage you to call your regional workplace or USDA Service Center to read more about our programs and the details you will require for a complete application. You likewise need to be able to find a listing in the telephone directory site in the section set aside for governmental/public organizations under the U.S. Department of Agriculture, Farm Service Agency. Our regional FSA offices enjoy to help you.
