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Emergency Farm Loans

When a tornado, flood, or dry spell strikes, or a quarantine is imposed by the Secretary of Agriculture, or when other natural catastrophes occur, FSA's Emergency loan program is there to assist qualified farmers and ranchers rebuild 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 is declared by the President under the Stafford Act. These loans help producers who suffer certifying farm associated losses straight brought on by the catastrophe in a county stated or designated as a main catastrophe or quarantine area. Also, farmers located in counties that are adjoining to the stated, designated, or quarantined area 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 complete the Emergency Loan Applications and Instructions:

* All FSA direct loan applications require the same standard kinds. Emergency loan demands have 2 additional forms, the accreditation of catastrophe losses and lending institution verification that business banking support was denied.

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

Emergency Loans Frequently Asked Questions

Loan Purposes

Emergency loan funds may be used to:

- Restore or change vital residential or commercial property.

- Pay all or part of production costs associated with the disaster year.

- Pay important family 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 listed below the typical production yield of the crop, as figured out by the Agency, is required. Losses to quality, such as receiving a minimized price for flood harmed crops, may likewise be qualified for help.

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

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

- loan applicants should intend to continue farming.

- loan applicants need to get composed declinations of credit from organized commercial lending institutions- If the loan is greater than $100,000 and less than $300,000, only 1 letter is needed.

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

- If the loan amount requested 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 loan is $500,000 yet the quantity a loan candidate might get is limited to the real amount of production or physical loss triggered by the catastrophe. Physical loss loans are based upon the amount required to change the lost residential or commercial property, such as stored grain, devices and livestock.

Repayment Terms

Repayment terms are based on the useful life of the security, a loan applicant's repayment capability, and the type of loss included. The repayment schedule will require at least 1 payment every year. Emergency loans for yearly operating expenditures must be paid back within 12 months, and not to go beyond 18 months if an extended term is necessary for the production cycle of the farming commodity.

Rate of interest

Interest rates are computed and published the 1st of every month. The rates of interest charged is constantly the lower rate in impact at the time of loan approval or loan closing for the kind of loan desired.

Additional Information

We motivate you to call your local workplace or USDA Service Center for more information about our programs and the info you will need for a complete application. You likewise ought to have the ability to discover a listing in the telephone directory site in the section reserve for governmental/public companies under the U.S. Department of Agriculture, Farm Service Agency. Our regional FSA offices more than happy to help you.