Kentucky FSA Newsletter - August 2025
In This Issue:
As farmers and ranchers, you are no strangers to keeping your eyes on the latest weather forecast. Our historically wet spring has now transitioned into going three weeks without any meaningful rainfall in some areas. Crops are starting to show signs of stress, but producers are still feeling positive about seeing some good yields come harvest. Grazing livestock still seem to be feeding on the early season growth, but grazed pastures are showing signs of the lack of rain as well. As I travel around the state, I see forage producers taking advantage of this stretch of dry weather to work in the hay fields.
As we move closer to harvest, I would like to take a moment and remind producers about our Marketing Assistance Loan program. Marketing assistance loans provide interim financing at harvest time to help agricultural producers meet cash flow needs without having to sell their commodities when market prices are typically at harvest-time lows. If you think that this program might be a useful tool for your operation, we would be glad to discuss it with you. I would also like to remind everyone of the Supplemental Disaster Relief Program (SDRP) signup that is currently underway.
Sign-up for SDRP Stage 1 started on July 10. This first stage of the program provides assistance to producers of indemnified crops for necessary expenses due to losses of revenue, quality, or production of crops due to weather related events in 2023 and 2024. SDRP Stage 2 will be announced in late September and will provide economic assistance for uncovered/shallow losses.
To date, through the suite of supplemental disaster assistance programs, our dedicated staff has delivered more than $174.5 million in natural disaster recovery and economic loss assistance to Kentucky farmers and livestock producers through the Emergency Commodity Assistance, Emergency Livestock Relief and Supplemental Disaster Relief programs with more assistance to come.
The staff here at the Farm Service agency are dedicated to serving our agricultural producers, no matter what you produce or the size of your operation. Our mission is to continue to put Farmers First. If you would like more information about any of our programs, please contact your local service center.
Respectfully,
David Wayne, State Executive Director
Kentucky FSA
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FSA offers direct farm ownership and direct farm operating loans to producers who want to establish, maintain, or strengthen their farm or ranch. Direct loans are processed, approved and serviced by FSA loan officers.
Direct farm operating loans can be used to purchase livestock and feed, farm equipment, fuel, farm chemicals, insurance, and other costs including family living expenses. Operating loans can also be used to finance minor improvements or repairs to buildings and to refinance some farm-related debts, excluding real estate.
Direct farm ownership loans can be used to purchase farmland, enlarge an existing farm, construct and repair buildings, and to make farm improvements.
The maximum loan amount for direct farm ownership loans is $600,000 and the maximum loan amount for direct operating loans is $400,000 and a down payment is not required. 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 local FSA office for more information or to apply for a direct farm ownership or operating loan.
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U.S. Secretary of Agriculture Brooke L. Rollins announced that agricultural producers who suffered eligible crop losses due to natural disasters in 2023 and 2024 can now apply for $16 billion in assistance through the Supplemental Disaster Relief Program (SDRP).
To expedite the implementation of SDRP, USDA’s Farm Service Agency (FSA) is delivering assistance in two stages. This first stage is open to producers with eligible crop losses that received assistance under crop insurance or the Noninsured Crop Disaster Assistance Program during 2023 and 2024. Stage One sign up started in-person at FSA county offices on July 10 and prefilled applications were mailed to producers starting July 9. SDRP Stage Two signups for eligible shallow or uncovered losses will begin in early fall.
SDRP Stage One
FSA is launching a streamlined, pre-filled application process for eligible crop, tree, and vine losses by leveraging existing Noninsured Crop Disaster Assistance Program (NAP) and Risk Management Agency (RMA) indemnified loss data. The pre-filled applications were mailed on July 9, 2025.
Eligibility
Eligible losses must be the result of natural disasters occurring in calendar years 2023 and/or 2024. These disasters include wildfires, hurricanes, floods, derechos, excessive heat, tornadoes, winter storms, freeze (including a polar vortex), smoke exposure, excessive moisture, qualifying drought, and related conditions.
To qualify for drought related losses, the loss must have occurred in a county rated by the U.S. Drought Monitor as having a D2 (severe drought) for eight consecutive weeks, D3 (extreme drought), or greater intensity level during the applicable calendar year.
Producers in Connecticut, Hawaii, Maine, and Massachusetts will not be eligible for SDRP program payments. Instead, these states chose to cover eligible crop, tree, bush, and vine losses through separate block grants. These block grants are funded through the $220M provided for this purpose to eligible states in the American Relief Act.
How to Apply
To apply for SDRP, producers must submit the FSA-526, Supplemental Disaster Relief Program (SDRP) Stage One Application, in addition to having other forms on file with FSA.
SDRP Stage One Payment Calculation
Stage One payments are based on the SDRP adjusted NAP or Federal crop insurance coverage level the producer purchased for the crop. The net NAP or net federal crop insurance payments (NAP or crop insurance indemnities minus administrative fees and premiums) will be subtracted from the SDRP calculated payment amount.
For Stage One, the total SDRP payment to indemnified producers will not exceed 90% of the loss and an SDRP payment factor of 35% will be applied to all Stage One payments. If additional SDRP funds remain, FSA may issue a second payment.
Future Insurance Coverage Requirements
All producers who receive SDRP payments are required to purchase federal crop insurance or NAP coverage for the next two available crop years at the 60% coverage level or higher. Producers who fail to purchase crop insurance for the next two available crop years will be required to refund the SDRP payment, plus interest, to USDA.
SDRP Stage 2
FSA will announce additional SDRP assistance for uncovered losses, including non-indemnified shallow losses and quality losses and how to apply later this fall.
Learn more by visiting fsa.usda.gov/sdrp.
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Ask USDA is now available as a tool for FSA customers to ask questions about FSA programs and services.
Ask USDA, available at ask.usda.gov provides information for all USDA programs. Ask USDA allows USDA customers to search for and read answers about FSA programs and services in the same location as they read about other USDA programs and services.
Customers are able to submit questions through email, chat, and phone if they need more information. This improved customer service approach provides a one-stop shopping experience that covers all of USDA’s many programs.
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The Farm Service Agency (FSA) makes loans to youth to establish and operate agricultural income-producing projects in connection with 4-H clubs, FFA and other agricultural groups. Projects must be planned and operated with the help of the organization advisor, produce sufficient income to repay the loan and provide the youth with practical business and educational experience. The maximum loan amount is $10,000.
Youth Loan Eligibility Requirements:
- Be a citizen of the United States (which includes Puerto Rico, the Virgin Islands, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands) or a legal resident alien
- Be 10 years to 20 years of age
- Comply with FSA’s general eligibility requirements
- Conduct a modest income-producing project in a supervised program of work as outlined above
- Demonstrate capability of planning, managing and operating the project under guidance and assistance from a project advisor. The project supervisor must recommend the youth loan applicant, along with providing adequate supervision.
For help preparing the application forms, contact your local USDA service center or visit fsa.usda.gov.
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Flowing grain in a storage bin or gravity-flow wagon is like quicksand — it can kill quickly. It takes less than five seconds for a person caught in flowing grain to be trapped.
The mechanical operation of grain handling equipment also presents a real danger. Augers, power take offs, and other moving parts can grab people or clothing.
These hazards, along with pinch points and missing shields, are dangerous enough for adults; not to mention children. It is always advisable to keep children at a safe distance from operating farm equipment. Always use extra caution when backing or maneuvering farm machinery. Ensure everyone is visibly clear and accounted for before machinery is engaged.
FSA wants all farmers to have a productive crop year and that begins with putting safety first.
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USDA’s Farm Service Agency (FSA) celebrated 25 years of the agency’s popular Farm Storage Facility Loan Program (FSFL) this May. For a quarter century, family-owned agricultural operations have received low-interest financing through the program to enhance or expand their operations and manage marketing of the commodities they produce by building or upgrading permanent and portable storage facilities and purchasing needed handling equipment.
The FSFL program was created in May 2000 to address existing on-farm grain storage needs. Since the program’s inception, more than 40,000 loans have been issued for on-farm storage, increasing storage capacity by one billion bushels. While many producers primarily associate the program with grain storage, over the past 25 years the eligible storage has expanded to include a wide variety of facilities and related equipment - new or used and permanent or portable - including hay barns, bulk tanks, and facilities for cold storage. Drying, handling and storage equipment is also eligible, including skid steers and storage and handling trucks.
Eligibility
Eligible commodities for storage loans include grains, oilseeds, peanuts, pulse crops, hay, hemp, honey, renewable biomass commodities, fruits and vegetables, floriculture, hops, seed cotton, wool, maple sap, maple syrup, milk, cheese, yogurt, butter, eggs, unprocessed meat and poultry, rye and aquaculture. Most recently, controlled atmosphere storage was added as an eligible facility and bison meat has been also added to the list of eligible commodities.
FSFL is an excellent financing program to address on-farm storage and handling needs for small and mid-sized farms, and for new farmers. Loan terms vary from three to 12 years. The maximum loan amount for storage facilities is $500,000. The maximum loan amount for storage and handling trucks is $100,000.
In 2016, FSA introduced a new storage loan category, the microloan, for loans with an aggregate balance up to $50,000. Microloans offer a 5% down payment requirement, compared to a 15% down payment for a regular FSFL, and microloans waive the regular three-year production history requirement.
How to apply
Loan applications should be filed in the administrative FSA county office that maintains a producer’s farm records. Producers can contact their FSA County Office to make an appointment. Beginning farmers who haven’t worked with FSA can visit farmers.gov/your-business/beginning-farmers for more information or view the New Farmers Fact Sheet.
For more information, visit the FSFL webpage, view the fact sheet and our Ask the Expert Blog, or contact your FSA County Office.
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Farm Loan Programs
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Farm Programs
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90-Day Treasury Bill
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4.375%
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Farm Storage Facility Loans
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3 Year
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3.75%
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Farm Operating Loans - Direct
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5.0%
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Farm Storage Facility Loans
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5 Year
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3.875%
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Farm Ownership Loans - Direct
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6.0%
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Farm Storage Facility Loans
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7 Year
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4.125%
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Limited Resource Loans
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5.000%
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Farm Storage Facility Loans
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10 Year
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4.375%
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Farm Ownership Loans - Direct FO Down Payment
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2.0%
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Farm Storage Facility Loans
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12 Year
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4.5%
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Emergency Loans
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3.750%
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Commodity Loans
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5.0%
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CCC Borrowing Rate
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4.0%
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Kentucky FSA State Office
771 Corporate Dr., Ste 205
Lexington, KY 40503
Phone: 859-224-7601
State Webpage
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Contact your local USDA Service Center for assistance with FSA loans or programs
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Kentucky FSA State Committee
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