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Emergency Farm Loans

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

The Emergency loan program is set off when a natural catastrophe is designated by the Secretary of Agriculture or a natural disaster or emergency situation is declared by the President under the Stafford Act. These loans help producers who suffer qualifying farm associated losses directly brought on by the disaster in a county stated or designated as a primary catastrophe or quarantine location. Also, farmers situated in counties that are contiguous to the declared, designated, or quarantined location might 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 Forms

Download and finish the Emergency Loan Applications and Instructions:

All FSA direct loan applications require the very same fundamental types. Emergency loan demands have 2 additional types, the certification of catastrophe losses and lender verification that business banking assistance was rejected.

When you satisfy with your FSA county Farm Loan Program personnel, you might be asked to complete additional kinds based on suitable loan program requirements for the loan type.

Emergency Loans Frequently Asked Questions

Loan Purposes

Emergency loan funds may be used to:

- Restore or change important residential or commercial property.
- Pay all or part of production expenses connected with the catastrophe year.
- Pay important family living costs.
- Reorganize the family farming operation.
- Refinance certain 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 reduced price for flood damaged crops, may also be qualified for help.

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 candidates should mean to continue farming.
- loan applicants need to get composed declinations of credit from arranged business loan provider- If the loan is greater than $100,000 and less than $300,000, only 1 letter is required.
- If the loan is higher than $300,000, 2 letters of declination are needed.
- If the loan quantity asked for is $100,000 or less, this requirement is determined on a case by case basis at the Agency's discretion.

Maximum Loan Limitations

The maximum loan quantity for an Emergency situation loan is $500,000 yet the amount a loan candidate may get is restricted to the actual amount of production or physical loss brought on by the . Physical loss loans are based upon the quantity required to replace the lost residential or commercial property, such as saved grain, devices and animals.

Repayment Terms

Repayment terms are based on the helpful life of the security, a loan candidate's repayment capability, and the type of loss included. The repayment schedule will need a minimum of 1 payment every year. Emergency loans for yearly business expenses should be repaid within 12 months, and not to exceed 18 months if a prolonged term is needed for the production cycle of the farming commodity.

Rate of interest

Rates of interest are determined and posted the 1st of monthly. The rate of interest charged is always the lower rate in result at the time of loan approval or loan closing for the type of loan desired.

Additional Information

We encourage you to call your regional office or USDA Service Center to get more information about our programs and the info you will require for a complete application. You likewise must have the ability to discover a listing in the phone book in the section reserve for governmental/public companies under the U.S. Department of Agriculture, Farm Service Agency. Our regional FSA workplaces are pleased to help you.