The following USDA Farm Service Agency news item is being sent to DACF subscribers as a courtesy.

Disaster Set-Aside Program for Farm Loan Borrowers

Farm Service Agency (FSA) borrowers with farms located in designated primary or contiguous disaster areas who are unable to make their scheduled FSA loan payments should consider the Disaster Set-Aside (DSA) program.

DSA is available to producers who suffered losses as a result of a natural disaster and relieves immediate and temporary financial stress. FSA is authorized to consider setting aside the portion of a payment/s needed for the operation to continue on a viable scale.

Borrowers must have at least two years left on the term of their loan in order to qualify. 

Borrowers have eight months from the date of the disaster designation to submit a complete application. The application must include a written request for DSA signed by all parties liable for the debt along with production records and financial history for the operating year in which the disaster occurred. FSA may request additional information from the borrower in order to determine eligibility. 

All farm loans must be current or less than 90 days past due at the time the DSA application is complete. Borrowers may not set aside more than one installment on each loan. 

The amount set-aside, including interest accrued on the principal portion of the set-aside, is due on or before the final due date of the loan. 

For more information on FSA’s Disaster Set-Aside, see USDA’s Disaster Assistance Programs Webpage.

For assistance contact: 
Christine Sullivan
ESF#11 Coordinator, Region I
USDA, APHIS
Christine.sullivan2@usda.gov
(508) 963-7406