If you own a farm, you’ve probably already heard a bit about the benefits of USDA farm loans. Through a USDA loan, you can gain access to long-term financing options with comfortably affordable interest rates.
The hard part, however, is understanding which USDA farm loan option is right for you. There are tons of different options out there, and each one comes with specific interest rates and benefits.
The USDA emergency farm loan provides an illustrative example. As the name suggests, this loan can provide financial aid to farmers who have been affected by a natural disaster. But like all USDA farm loans, the emergency farm loan program comes with some stringent qualification requirements.
This article will outline the need-to-know basics of USDA emergency farm loans, and how you can start finding a lender.
USDA Emergency Farm Loan Eligibility Requirements
Broadly speaking, this farm loan program can provide financial relief to any farmer who’s been affected by a natural disaster. But it’s important to bear in mind, here, that “natural disaster” in this context comes with some qualifications.
The emergency farm loan only becomes available when a natural disaster has been officially declared by the Secretary of Agriculture. It also becomes available if the President designates an event as a natural disaster according to the Stafford Act. In other words, the emergency farm loan is only launched in the event of a legitimate and large-scale natural disaster.
Examples of potential natural disasters that may necessitate the implementation of the emergency farm loan program by the USDA include:
- Draught;
- Flooding;
- Tornados;
- Quarantine to stop the spread of invasive pests or plant-borne diseases;
How to Qualify for a USDA Emergency Farm Loan
Additional qualification requirements include (but are not limited to):
- Applicants must have experienced “a 30% reduction in a primary crop in a designated or contiguous county.”
- The applicant must be the primary farm owner or operator at the time of the natural disaster.
- The property losses must be directly and exclusively attributable to the natural disaster in question.
- All applicants will be required to obtain crop insurance in order to be able to qualify for a loan.
Learn More About USDA Farm Loans
Are you interested in obtaining a USDA farm loan to purchase your farm or keep it protected from future disasters? If so, the expert lenders at MSF Agriculture are standing by and ready to help! Contact our office today to start looking for flexible and affordable USDA farm loans!