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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 take place, FSA's Emergency loan program is there to help eligible farmers and ranchers rebuild and recuperate from sustained losses.

The Emergency loan program is activated when a natural catastrophe 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 straight triggered by the disaster in a county stated or designated as a primary catastrophe or quarantine location. Also, farmers located in counties that are adjoining to the stated, designated, or quarantined location might certify 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 very same standard kinds. Emergency loan demands have 2 additional types, the accreditation of catastrophe losses and lending institution confirmation that business banking help was rejected.

When you meet with your FSA county Farm Loan Program staff, you may be asked to complete additional forms based on applicable loan program requirements for the loan type.

Emergency Loans Frequently Asked Questions

Loan Purposes

Emergency loan funds might be used to:

- Restore or change necessary residential or commercial property.

- Pay all or part of production expenses related to the catastrophe year.

- Pay necessary family living costs.

- Reorganize the family farming operation.

- Refinance particular 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 figured out by the Agency, is required. Losses to quality, such as receiving a decreased rate for flood damaged crops, might likewise be qualified for support.

In addition to the general eligibility requirements all loan candidates should fulfill, there are some additional 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 catastrophe.

- loan applicants need to plan to continue farming.

- loan applicants should get written declinations of credit from organized business 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 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 maximum loan quantity for an Emergency loan is $500,000 yet the quantity a loan candidate might get is limited to the actual quantity of production or physical loss caused by the catastrophe. Physical loss loans are based upon the amount required to replace the lost residential or commercial property, such as kept grain, devices and livestock.

Repayment Terms

Repayment terms are based upon the helpful life of the security, a loan applicant's payment capability, and the type of loss involved. The repayment schedule will need at least 1 payment every year. Emergency loans for annual operating costs must be paid back within 12 months, and not to exceed 18 months if a prolonged term is essential for the production cycle of the agricultural commodity.

Interest Rate

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

Additional Information

We encourage you to contact your regional office or USDA Service Center to discover more about our programs and the info you will require for a total application. You also need to be able to discover a listing in the telephone directory in the area reserve for governmental/public companies under the U.S. Department of Agriculture, Farm Service Agency. Our regional FSA workplaces are pleased to assist you.