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Emergency Farm Loans

When a tornado, flood, or drought strikes, or a quarantine is imposed by the Secretary of Agriculture, or when other natural catastrophes occur, FSA's Emergency loan program exists to help 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 manufacturers who suffer certifying farm associated losses straight brought on by the disaster in a county declared or designated as a main disaster or quarantine area. Also, farmers located in counties that are contiguous to the declared, designated, or quarantined area might 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 *

Download and complete the Emergency Loan Applications and Instructions:

* All FSA direct loan applications need the exact same standard forms. Emergency loan demands have 2 additional types, the certification of disaster losses and loan provider verification that industrial banking support was denied.

When you meet your FSA county Farm Loan Program personnel, you might be asked to complete extra types based upon 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 important residential or commercial property.

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

- Pay essential household living expenditures.

- 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 regular production yield of the crop, as identified by the Agency, is required. Losses to quality, such as getting a lowered price for flood harmed crops, might also be eligible for assistance.

In addition to the basic eligibility requirements all loan applicants must fulfill, there are some additional criteria unique to the Emergency Loan program:

- the loan candidate should be a recognized farmer and either the owner-operator or tenant-operator of the farm at the time of the catastrophe.

- loan applicants must mean to continue farming.

- loan candidates need to get composed declinations of credit from organized business loaning institutions- If the loan is higher than $100,000 and less than $300,000, just 1 letter is required.

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

- 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 optimum loan amount for an Emergency loan is $500,000 yet the quantity a loan applicant may receive is restricted to the real amount of production or physical loss triggered by the disaster. Physical loss loans are based upon the amount needed to change the lost residential or commercial property, such as stored grain, devices and animals.

Repayment Terms

Repayment terms are based upon the useful life of the security, a loan candidate's repayment ability, and the kind of loss included. The repayment schedule will require a minimum of 1 payment every year. Emergency loans for annual business expenses should be repaid within 12 months, and not to exceed 18 months if an extended term is needed for the production cycle of the farming commodity.

Rate of interest

Rate of interest are computed and published the 1st of monthly. The rate of interest charged is always 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 contact your local office or USDA Service Center to read more about our programs and the details you will need for a complete application. You likewise ought to be able to discover a listing in the telephone directory site in the area set aside for governmental/public organizations under the U.S. Department of Agriculture, Farm Service Agency. Our regional FSA offices are pleased to assist you.