In This Issue:
As we approach the end of the year and holidays, I want to take a moment to remind you of some upcoming program deadlines. We’re all very busy at this time of year. I want to make sure you’re on the right track when it comes to applying for program assistance.
The Farm Service Agency (FSA) recently announced the new Farmer Bridge Assistance (FBA) program that provides a one-time bridge payment to American farmers in response to temporary trade market disruptions and increased production costs. This program is based on FSA reported planted acres. Commodity-specific payment rates will be released by the end of December and we’re expecting pre-filled applications to go out to eligible producers during the week of Feb. 23 to meet the target of FBA payments processing by Feb. 28, 2026. We continue to work on FBA policies and provisions for specialty crop producer assistance. We understand you have questions. Producers, including specialty crop producers and stakeholder groups, can submit questions to farmerbridge@usda.gov. I will provide FBA updates as details unfold.
Sign-up is underway for Stage 2 of the Supplemental Disaster Relief Program (SDRP), which covers eligible crop, tree, bush and vine losses that were not covered under Stage 1 program provisions, including non-indemnified (shallow losses), uncovered, and quality losses. Producers have until April 30, 2026, to apply for both Stage 1 and Stage 2 assistance. I strongly encourage you to use the SDRP Stage 2 Pre-Application Checklist to ensure you have the required forms on file with your FSA county office and to help you start gathering supporting documentation that may be required. When you’re ready, please make an appointment with your local FSA office.
For the first time, USDA disaster assistance will cover shallow losses – losses that didn’t trigger a crop insurance or NAP indemnity but still hit the bottom line. We heard loud and clear from producers that this was a gap in previous programs. Stage 2 also covers uninsured losses and quality losses, everything from smoke-damaged fruit to forage that lost nutritional value due to weather extremes. If the crop’s value dropped because of a disaster, we’re going to recognize that loss.
FSA is also delivering additional disaster assistance through the Milk Loss Program (MLP) for dumped milk and the On-Farm Stored Commodity Loss Program (OFSCLP), which both have a Jan. 23, 2026, signup deadline.
2025 Overview – Illinois FSA is Delivering on Our Promise to Put Farmers First
Over the past year, the Trump Administration and FSA have demonstrated our commitment to putting Illinois Farmers First.
Since March 2025, FSA has supported farmers and ranchers in State through supplemental disaster assistance including $773,356,283 million through the Emergency Commodity Assistance Program, $1,145,247 million through the Emergency Livestock Relief Program and more than $234,234,542 million in SDRP Stage 1 payments to date.
Last month FSA provided $58,241,628 million in Agriculture Risk Coverage and Price Loss Coverage (ARC/PLC) payments as well as $170,474,713 million in Conservation Reserve Program (CRP) annual rental payments to producers and landowners in Illinois. These payments came at a critical time as I know many of you are booking inputs and planning for the 2026 crop year.
This year, FSA also provided $74,690,345 million to producers through the Marketing Assistance Loan (MAL) program, which provides a short-term loan on eligible commodities that gives producers marketing flexibility to sell their crops when prices are more favorable.
In addition to farm program payments, FSA farm loan staff continue to see strong interest in our direct and guaranteed ownership and operating loans, which offer loans with flexible terms and favorable loan rates. Over the last fiscal year FSA obligated a total of $165,268,928 million in direct loans and $146,255,648 million in guaranteed loans across Illinois. These loans help borrowers start or expand their agricultural operations, pay family living expenses and fund day-to-day operating expenses.
I’m proud of the support that the FSA staff in Illinois have provided to our producers. We recognize the challenges that producers continue to face and I look forward to working on behalf of the Trump Administration and U.S. Secretary of Agriculture Brooke Rollins to ensure the success of the agriculture industry across the state.
Read more about how The Trump Administration has been working around the clock since January 20th to put American Farmers First .
As a reminder, all FSA offices will be closed Wednesday, Dec. 24 through Friday, Dec. 26, 2025, in accordance with President Trump’s Dec. 18 Executive Order and in observance of Dec. 25, Christmas Day, an official federal holiday.
It’s an honor to serve the farmers and ranchers in the great state of Illinois.
Wishing you a safe and happy holiday season.
SED William Graff
FSA State Executive Director, Illinois
The Farm Service Agency (FSA) offers two types of set-aside programs to assist FSA direct loan borrowers. The set-aside programs are intended to help distressed borrowers as well as borrowers impacted by natural disasters.
Disaster Set-Aside Program
The Disaster Set-Aside Program (DSA) assists existing FSA direct loan borrowers who have been impacted by natural disasters. The DSA program provides short-term financial relief by allowing eligible borrowers to delay FSA direct loan payments that are due this year or next year (but not both). You may delay up to one full annual payment per loan and the delayed payment will be moved to the end of the loan term. You will not be required to pay this set-aside installment until the loan’s final due date.
The principal portion of the amount set-aside will continue to accrue interest at your loan’s existing interest rate.
To be eligible, borrowers must have operated a farm in a county declared a disaster area or a contiguous county at the time of the disaster. In addition, the borrower’s inability to make their upcoming payment must be due to the disaster.
To apply for DSA, borrowers must provide their local USDA Service Center with a letter requesting DSA, which must be signed by all parties liable for the debt. The letter must be provided to your local Service Center within eight months of the disaster declaration date. The application process also includes providing your actual production, income, and expense records for the last three years. FSA may also request additional information as needed to make an eligibility decision.
Distressed Borrower Set-Aside Program
FSA Direct Farm Loan Program borrowers whose loans were closed before Sept. 25, 2024, may be eligible for assistance under the Distressed Borrower Set-Aside Program (DBSA). Similar to DSA, DBSA also provides short-term financial relief by allowing eligible borrowers to delay FSA direct loan payments that are due this year or next year (but not both). You may delay up to one full annual payment per loan and the delayed payment will be moved to the end of the loan term. You will not be required to pay this set-aside installment until the loan’s final due date.
An increased benefit with DBSA is that the principal portion of the set-aside will accrue interest at a reduced rate of 0.125% rather than your loan’s existing interest rate.
To be eligible for DBSA, the borrower must demonstrate financial distress, but their inability to make the upcoming payment does not need to be due to a disaster.
The DBSA application process is similar to DSA as borrowers must provide their local USDA Service Center with a letter requesting DBSA, which must be signed by all parties liable for the debt. The application process also includes providing your actual production, income, and expense records for the last three years. FSA may also request additional information as needed to make an eligibility decision.
Important Factors for Both DSA and DBSA:
FSA direct loan borrowers are not able to obtain more than one set-aside per loan. Borrowers also cannot obtain both a DSA and DBSA simultaneously on the same loan. In addition, FSA direct loans with less than two years remaining are not eligible for a DSA or DBSA. Other eligibility requirements apply; we encourage you to contact your local Service Center for more information.
Both DSA and DBSA are intended to provide short-term relief for situations where borrowers anticipate the ability to resume paying their full annual installment(s) in the following year. If you require a more long-term form of financial relief, FSA has other potential options available through primary loan servicing (PLS).
For more information on DSA, DBSA, or PLS, please contact your County Service Center. You may also visit fsa.usda.gov.
Additional information, eligibility criteria and program limitations may be found within the Disaster Set-Aside and Distressed Borrower Set-Aside Program fact sheets.
The Farm Loan team in is already working on operating loans for spring and asks potential borrowers to submit their requests early so they can be timely processed. The farm loan team can help determine which loan programs are best for applicants.
FSA offers a wide range of low-interest loans that can meet the financial needs of any farm operation for just about any purpose. The traditional farm operating and farm ownership loans can help large and small farm operations take advantage of early purchasing discounts for spring inputs as well expenses throughout the year.
Microloans are a simplified loan program that will provide up to $50,000 for both Farm Ownership and Operating Microloans to eligible applicants. These loans, targeted for smaller and non-traditional operations, can be used for operating expenses, starting a new operation, purchasing equipment, and other needs associated with a farming operation. Loans to beginning farmers and members of underserved groups are a priority.
Other types of loans available include:
Marketing Assistance Loans allow producers to use eligible commodities as loan collateral and obtain a 9-month loan while the crop is in storage. These loans provide cash flow to the producer and allow them to market the crop when prices may be more advantageous.
Farm Storage Facility Loans can be used to build permanent structures used to store eligible commodities, for storage and handling trucks, or portable or permanent handling equipment. A variety of structures are eligible under this loan, including bunker silos, grain bins, hay storage structures, and refrigerated structures for vegetables and fruit. A producer may borrow up to $500,000 per loan.
In order to claim a Farm Service Agency (FSA) payment on behalf of a deceased producer, all program conditions for the payment must have been met before the applicable producer’s date of death.
If a producer earned an FSA payment prior to his or her death, the following is the order of precedence for the representatives of the producer:
- administrator or executor of the estate
- the surviving spouse
- surviving sons and daughters, including adopted children
- surviving father and mother
- surviving brothers and sisters
- heirs of the deceased person who would be entitled to payment according to the State law
For FSA to release the payment, the legal representative of the deceased producer must file a form FSA-325 to claim the payment for themselves or an estate. The county office will verify that the application, contract, loan agreement, or other similar form requesting payment issuance, was signed by the applicable deadline by the deceased or a person legally authorized to act on their behalf at that time of application.
If the application, contract or loan agreement form was signed by someone other than the deceased participant, FSA will determine whether the person submitting the form has the legal authority to submit the form.
Payments will be issued to the respective representative’s name using the deceased program participant’s tax identification number. Payments made to representatives are subject to offset regulations for debts owed by the deceased.
FSA is not responsible for advising persons in obtaining legal advice on how to obtain program benefits that may be due to a participant who has died, disappeared or who has been declared incompetent.
The Farm Service Agency (FSA), Natural Resources Conservation Service (NRCS) and Risk Management Agency (RMA) worked together to develop consistent, simple and a flexible policy for cover crop practices.
Cover crops, such as grasses, legumes and forbs, can be planted: with no subsequent crop planted, before a subsequent crop, after prevented planting acreage, after a planted crop, or into a standing crop.
Termination:
The cover crop termination guidelines provide the timeline for terminating cover crops, are based on zones and apply to non-irrigated cropland. To view the zones and additional guidelines visit nrcs.usda.gov/wps/portal/nrcs/main/national/landuse/crops/ and click “Cover Crop Termination Guidelines.”
The cover crop may be terminated by natural causes, such as frost, or intentionally terminated through chemical application, crimping, rolling, tillage or cutting. A cover crop managed and terminated according to NRCS Cover Crop Termination Guidelines is not considered a crop for crop insurance purposes.
Reporting:
The intended use of cover only will be used to report cover crops. This includes crops
that were terminated by tillage and reported with an intended use code of green manure. An FSA policy change will allow cover crops to be hayed and grazed. Program eligibility for the cover crop that is being hayed or grazed will be determined by each specific program.
If the crop reported as cover only is harvested for any use other than forage or grazing and is not terminated properly, then that crop will no longer be considered a cover crop.
Crops reported with an intended use of cover only will not count toward the total cropland on the farm. In these situations, a subsequent crop will be reported to account for all cropland on the farm.
USDA’s Farm Service Agency (FSA) is delivering more than $16 billion in total Congressionally approved disaster relief. FSA is now accepting applications for assistance through the second stage of the Supplemental Disaster Relief Program (SDRP) from agricultural producers who suffered eligible non-indemnified, uncovered or quality crop losses due to qualifying natural disasters in 2023 and 2024.
Stage Two covers eligible crop, tree, bush and vine losses that were not covered under Stage One program provisions, including non-indemnified (shallow loss), uncovered and quality losses. Although the majority of payments from the first stage are already in the hands of producers helping them prepare for and invest in the next crop year, Stage One assistance, announced in July, remains available to producers who received an indemnity under crop insurance or the Noninsured Crop Disaster Assistance Program (NAP) for eligible crop losses due to qualifying 2023 and 2024 natural disaster events.
The deadline to apply for both One and Stage Two assistance is April 30, 2026.
SDRP Stage Two Program Details
SDRP Stage Two provides assistance for eligible crop, tree, bush and vine losses not covered under Stage One, including:
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Non-Indemnified Losses (Including Shallow Losses)
- Insured losses through federal crop insurance that did not trigger a crop insurance indemnity.
- Losses with NAP coverage that did not trigger a NAP payment.
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Uncovered Losses (Uninsured Losses)
- Includes losses that were not insured through federal crop insurance or NAP.
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Quality Losses
- Includes quality losses to commodities indicated by:
- A decrease in value based on discounts due to the physical condition of the crop supported by applicable grading factors
- A decline in the nutritional value of forage crops supported by documented forage tests.
- Producers will certify to an SDRP quality loss percentage.
FSA is establishing block grants with Connecticut, Hawaii, Maine, and Massachusetts that cover crop losses; therefore, producers with losses on land physically located in these states are not eligible for SDRP program payments.
For information on program eligibility and to download an application checklist, visit fsa.usda.gov/sdrp.
More information will be provided in early 2026 regarding a separate enrollment period for quality losses covered by SDRP Stage One as well as for insured producers in Puerto Rico who were not included in Stage One because data was not available when pre-filled applications were mailed.
For more information, contact your local County USDA Service Center or visit fsa.usda.gov.
Producers in Champaign, Coles, DeWitt, Douglas, McLean, Moultrie, Piatt, and Shelby County are eligible to apply for 2025 Livestock Forage Disaster Program (LFP) benefits on native pasture and full season improved pasture.
LFP provides compensation if you suffer grazing losses for covered livestock due to drought on privately owned or cash leased land or fire on federally managed land.
County committees can only accept LFP applications after notification is received by the National Office of qualifying drought or if a federal agency prohibits producers from grazing normal permitted livestock on federally managed lands due to qualifying fire. You must complete a CCC-853 and the required supporting documentation no later than March 2, 2026, for 2025 losses.
For additional information about LFP, including eligible livestock and fire criteria, contact your local County USDA Service Center or visit fsa.usda.gov.
Marketing Assistance Loans (MALs) and Loan Deficiency Payments (LDPs) provide financing and marketing assistance for wheat, feed grains, soybeans, and other oilseeds, pulse crops, rice, peanuts, cotton, wool and honey. MALs provide you with interim financing after harvest to help you meet cash flow needs without having to sell your commodities when market prices are typically at harvest-time lows. A producer who is eligible to obtain a loan, but agrees to forgo the loan, may obtain an LDP if such a payment is available. Marketing loan provisions and LDPs are not available for sugar and extra-long staple cotton.
FSA is now accepting requests for 2025 MALs and LDPs for all eligible commodities after harvest. Requests for loans and LDPs shall be made on or before the final availability date for the respective commodities.
Commodity certificates are available to loan holders who have outstanding nonrecourse loans for wheat, upland cotton, rice, feed grains, pulse crops (dry peas, lentils, large and small chickpeas), peanuts, wool, soybeans and designated minor oilseeds. These certificates can be purchased at the posted county price (or adjusted world price or national posted price) for the quantity of commodity under loan, and must be immediately exchanged for the collateral, satisfying the loan. MALs redeemed with commodity certificates are not subject to Adjusted Gross Income provisions.
To be considered eligible for an LDP, you must have form CCC-633EZ, Page 1 on file at your local FSA Office before losing beneficial interest in the crop. Pages 2, 3 or 4 of the form must be submitted when payment is requested.
Marketing loan gains (MLGs) and loan deficiency payments (LDPs) are no longer subject to payment limitations, actively engaged in farming and cash-rent tenant rules.
Adjusted Gross Income (AGI) provisions state that if your total applicable three-year average AGI exceeds $900,000, then you’re not eligible to receive an MLG or LDP. You must have a valid CCC-941 on file to earn a market gain of LDP. The AGI does not apply to MALs redeemed with commodity certificate exchange.
For more information and additional eligibility requirements, contact your County USDA Service Center or visit fsa.usda.gov.
USDA offers programs to help producers recover from disasters; FEMA can help you prepare ahead of time.
The Federal Emergency Management Agency (FEMA) has a free mobile app that explains what to do before, during and after emergencies. The app is available for download for Apple, Android and Blackberry mobile devices.
Download the app to:
- Receive alerts from the National Weather Service for up to five locations
- Get safety reminders, read tips to survive natural disasters and customize your emergency checklist
- Locate open shelters and where to talk to FEMA in person (or on the phone)
- Upload and share your disaster photos to help first responders.
For more information about the FEMA app, visit fema.gov/mobile-app. To download the FEMA app from the Apple Store visit itunes.apple.com/us/app/fema/id474807486?mt=8. To download the FEMA app on Google Play for Android visit: play.google.com/store/apps/details?id=gov.fema.mobile.android&hl=en
Farmers and ranchers know all too well that natural disasters can be a common, and likely a costly, variable to their operation. The Farm Service Agency (FSA) has emergency assistance programs to provide assistance when disasters strike, and for some of those programs, a disaster designation may be the eligibility trigger.
FSA administers four types of disaster designations.
USDA Secretarial Disaster Designation
- The designation process can be initiated by individual farmers, local government officials, State governors, State agriculture commissions, tribal councils or the FSA State Executive Director
- This designation is triggered by a 30-percent or greater production loss to at least one crop because of a natural disaster, or at least one producer who sustained individual losses because of a natural disaster and is unable to obtain commercial financing to cover those losses
- In 2012, USDA developed a fast-track process for disaster declarations for severe drought. This provides for a nearly automatic designation when, during the growing season, any portion of a county meets the D2 (Severe Drought) drought intensity value for eight consecutive weeks or a higher drought intensity value for any length of time as reported by the U.S. Drought Monitor (https://www.droughtmonitor.unl.edu/)
Administrator’s Physical Loss Notification
This designation is initiated by the FSA State Executive Director.
- The designation is triggered by physical damage and losses because of a natural disaster, including but not limited to dead livestock, collapsed buildings, and destroyed farm structures.
Presidential Designation
- A Presidential major disaster designation and emergency declaration is initiated by the Governor of the impacted state through the Federal Emergency Management Agency (FEMA).
- This designation is triggered by damage and losses caused by a disaster of such severity and magnitude that effective response is beyond the capability of the State and local governments.
Quarantine Designation
- This designation is requested of the Secretary of Agriculture by the FSA State Executive Director.
- A quarantine designation is triggered by damage and losses caused by the effects of a plant or animal quarantine approved by the Secretary under the Plant Protection Act or animal quarantine laws.
All four types of designations immediately trigger the availability of low-interest emergency loans to eligible producers in all primary and contiguous counties. FSA borrowers in these counties who are unable to make their scheduled payments on any debt may be authorized to have certain set asides. Additional disaster assistance requiring a designation may also be provided by new programs in the future.
For more information on FSA disaster programs and disaster designations, contact your County USDA Service Center or visit fsa.usda.gov/disaster.
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