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Emergency Farm Loans

When a tornado, flood, or drought strikes, or a quarantine is enforced by the Secretary of Agriculture, or when other natural disasters happen, FSA's Emergency loan program is there to help qualified farmers and ranchers restore and recover from sustained losses.

The Emergency loan program is triggered when a natural catastrophe is designated by the Secretary of Agriculture or a natural disaster or emergency is stated by the President under the Stafford Act. These loans assist producers who suffer certifying farm related losses directly caused by the catastrophe in a county declared or designated as a main disaster or quarantine location. Also, farmers situated in counties that are contiguous to the declared, designated, or quarantined location may 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 finish the Emergency Loan Applications and Instructions:

All FSA direct loan applications require the exact same standard types. Emergency loan requests have 2 extra types, the certification of disaster losses and loan provider verification that business banking assistance was rejected.

When you fulfill with your FSA county Farm Loan Program personnel, you may be asked to complete based upon applicable loan program requirements for the loan type.

Emergency Loans Frequently Asked Questions

Loan Purposes

Emergency loan funds may be utilized to:

- Restore or replace essential residential or commercial property.
- Pay all or part of production costs connected with the disaster year.
- Pay necessary family living costs.
- Reorganize the family farming operation.
- Refinance specific non-real estate operating financial obligations.
Eligibility Requirements

For production losses, a catastrophe year yield that is below the typical production yield of the crop, as identified by the Agency, is needed. Losses to quality, such as receiving a reduced cost for flood damaged crops, may likewise be qualified for assistance.

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

- the loan applicant should be a recognized farmer and either the owner-operator or tenant-operator of the farm at the time of the catastrophe.
- loan candidates must mean to continue farming.
- loan applicants need to get composed declinations of credit from arranged commercial financing institutions- 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 needed.
- If the loan quantity asked for 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 applicant might get is limited to the real amount of production or physical loss brought on by the catastrophe. Physical loss loans are based upon the quantity needed to replace the lost residential or commercial property, such as saved grain, equipment and livestock.

Repayment Terms

Repayment terms are based on the beneficial life of the security, a loan candidate's repayment capability, and the kind of loss included. The repayment schedule will require at least 1 payment every year. Emergency loans for annual operating expenses should be paid back within 12 months, and not to surpass 18 months if an extended term is essential for the production cycle of the agricultural product.

Rates of interest

Rates of interest are computed and posted the 1st of each 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 local workplace or USDA Service Center to find out more about our programs and the information you will need for a complete application. You likewise need to have the ability to discover a listing in the phone book in the area set aside for governmental/public companies under the U.S. Department of Agriculture, Farm Service Agency. Our local FSA offices enjoy to assist you.