USDA Emergency Farm Loans

The USDA Farm Service Agency’s Emergency Farm 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 eligible farmers and ranchers who suffer qualifying farm related losses directly caused by the disaster rebuild and recover from sustained losses.

Producers can borrow up to 100% of their actual production or physical losses, with a maximum limit of $500,000. The funds from this program may be used to:

• Restore or replace essential property;
• Pay all or part of production costs associated with the disaster year;
• Pay essential family living expenses;
• Reorganize the farming operation; and
• Refinance certain debts.

Eligible participants are farmers and ranchers who:

• Own or operate land located in a county declared by the President or designated by the Secretary of Agriculture as a primary disaster area. All counties contiguous to the declared or designated primary counties are also eligible for emergency loans.
• Are established family farm operators and have sufficient farming or ranching experience;
• Are citizens or permanent residents of the United States;
• Have suffered at least a 30 percent loss in crop production or a physical loss to livestock, livestock products, real estate, or chattel property;
• Have an acceptable credit history;
• Are unable to receive credit from commercial sources;
• Can provide collateral to secure the loan; and
• Have repayment ability.

Next Steps:

1. Find the current emergency loan interest rate.
2. Download and complete the Emergency Loan Applications and Instructions. Note that applications must be received within eight months of the county’s disaster.
3. Once you have been approved, you will be required to develop and agree to a farm plan with local FSA staff.

Special Considerations:

• All emergency loans must be fully collateralized.
• You must keep acceptable farm records.
• You may be required to participate in a financial management training program.
• You may be required to obtain crop insurance.