USDA Reopens Application Period for Producers Recovering from Cattle Loss, Other Disasters
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USDA began accepting disaster assistance program applications on June 4 from agricultural producers who suffered livestock, honeybees, farm-raised fish and other losses due to natural disasters.
USDA’s Farm Service Agency (FSA) reopened the application period for two disaster assistance programs in response to statutory changes made by Congress earlier this year.
Beginning June 4, FSA will accept new applications for losses for calendar year 2017 or 2018 filed under the Livestock Indemnity Program (LIP) or Emergency Assistance for Livestock, Honey Bees, and Farm-raised Fish Program (ELAP). Producers who already submitted applications and received decisions on their applications for these years do not need to file again, but they can reapply if they have additional losses or their application was disapproved because it was filed late.
In February, Congress passed the Bipartisan Budget Act of 2018, which made several changes to these two disaster programs, including:
Removing ELAP’s $20 million fiscal year funding cap, enabling FSA to pay producers’ 2017 applications in full and their 2018 applications as soon as they are approved.
Removing the per-person and legal entity annual program payment limitation of $125,000 for LIP for 2017 and future years. (The income limitation applies as it did before, meaning producers with an adjusted gross income of more than $900,000 are not eligible.)
Changing LIP to allow producers to receive a payment for injured livestock that are sold for a reduced price due to an eligible event. Previously, the program only covered financial loss for livestock death above normal mortality.
Producers interested in LIP or ELAP should contact their local USDA service center. To apply, producers will need to provide verifiable and reliable production records and other information about their operation.
Various disasters continue to impact farmers and ranchers, and LIP and ELAP are two of many programs available through USDA to help producers recover. Learn more at https://www.usda.gov/disaster.
Guaranteed Loan Program
FSA guaranteed loans allow lenders to provide agricultural credit to farmers who do not meet the lender’s normal underwriting criteria. Farmers and ranchers apply for a guaranteed loan through a lender, and the lender arranges for the guarantee. FSA can guarantee up to 95 percent of the loss of principal and interest on a loan. Guaranteed loans can be used for both farm ownership and operating purposes.
Guaranteed farm ownership loans can be used to purchase farmland, construct or repair buildings, develop farmland to promote soil and water conservation or to refinance debt.
Guaranteed operating loans can be used to purchase livestock, farm equipment, feed, seed, fuel, farm chemicals, insurance and other operating expenses.
FSA can guarantee farm ownership and operating loans up to $1,399,000. Repayment terms vary depending on the type of loan, collateral and the producer’s ability to repay the loan. Operating loans are normally repaid within seven years and farm ownership loans are not to exceed 40 years.
Please contact your lender or local FSA farm loan office for more information on guaranteed loans.
