View as a webpage / Share

Kentucky FSA Newsletter - January 2026

In This Issue:

• Message from David Wayne, State Executive Director for FSA in Kentucky
• USDA Announces Commodity Payment Rates for Farmer Bridge Assistance Program
• Farm Service Agency Announces Updated Schedule for County Committee Elections
• USDA Opens Enrollment for Dairy Margin Coverage for 2026
• Disaster Set-Aside and Distressed Borrower Set-Aside Programs
• Applying for FSA Direct Loans
• Current Farm Loans and Farm Programs Interest Rates - January 2026

Message from David Wayne, State Executive Director for FSA in Kentucky

As we settle into January, many farmers are preparing for this next growing season. Livestock producers continue the winter routine of feeding and battling the fluctuating temperatures. Our staff at the Farm Service Agency (FSA) are busy this winter with disaster program delivery and assistance program rollouts. As you keep your cattle fed or work through servicing your equipment, add a visit to the FSA office to update your records and get information about our current programs.   I’ve mentioned the Marketing Assistance Loan (MAL) program a couple of times and I’d like to remind you once more about the program and its benefits. A MAL could be a vital tool in your financial toolbox this year. As you wait to market your grain, a MAL could provide some capital to make prepayments on inputs which could help lock in some favorable prices this time of year.  On Dec. 8, President Trump and Secretary of Agriculture Brooke L. Rollins announced $12 billion in one-time Farmer Bridge Assistance (FBA) program payments to provide relief to American farmers facing ongoing market disruptions, elevated input costs, and lingering impacts from years of failed trade and economic policies. This assistance provides producers with a bridge until the benefits of the One Big Beautiful Bill Act (OBBBA) are made available.  FSA is dedicated to serving our agricultural producers, no matter what you produce or the size of your operation. FSA staff welcome the opportunity to discuss which of our programs may be available for your agricultural 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

USDA Announces Commodity Payment Rates for Farmer Bridge Assistance Program

USDA announced the next phase in the Farmer Bridge Assistance Program (FBA), the eligible commodity per-acre payment rates. In 2026, $12 billion will be paid to American farmers. Of that amount, $11 billion consists of one-time FBA program payments.

Eligible Row Crop Commodities and Payment Rates: 

Below are the payment rates for the FBA eligible commodities that triggered a payment.  

Commodity, Per Acre Payment Rates

• Barley: $20.51
• Canola: $23.57
• Chickpeas (Large): $26.46
• Chickpeas (Small): $33.36
• Corn: $44.36
• Cotton: $117.35
• Flax: $8.05
• Lentils: $23.98
• Mustard: $23.21
• Oats: $81.75
• Peanuts: $55.65
• Peas: $19.60
• Rice: $132.89
• Safflower: $24.86
• Sesame: $13.68
• Sorghum: $48.11
• Soybeans: $30.88
• Sunflower: $17.32
• Wheat: $39.35

Eligibility, Program Applications, and Crop Insurance Linkage 

FBA payments are based on 2025 planted acres, Economic Research Service cost of production, and the World Agriculture Supply and Demand Estimate Report. Double crop acres, including all initial and subsequently planted crops, are eligible. Prevent plant acres are not eligible. 

All intended row crop uses are eligible for FBA except grazing, volunteer stands, experimental, green manure, crops left standing and abandoned or cover crops. 

Crop insurance linkage is not required; however, USDA strongly urges producers to take advantage of the new risk management tools provided for in the One Big Beautiful Bill Act (OBBBA) to best protect against future price risk and volatility. The OBBBA federal crop insurance improvements include expanding benefits for beginning farmers and ranchers, increasing coverage options, and making crop insurance more affordable. 

Specialty Crop Assistance 

Of the $12 billion being provided by the Commodity Credit Corporation Charter Act, up to $11 billion is being directed to eligible row crop producers and the remaining $1 billion of the $12 billion in assistance is reserved for specialty crops and sugar. Timelines for payments to producers of these crops are still under development and require additional understanding of market impacts and economic needs.

Producers, including specialty crop producers and stakeholder groups, can submit questions to farmerbridge@usda.gov. 

 More information on FBA is available online at https://www.fsa.usda.gov/fba or you can contact your local USDA FSA county office. 

Top of page

Farm Service Agency Announces Updated Schedule for County Committee Elections

The U.S. Department of Agriculture (USDA) has revised the Farm Service Agency (FSA) county committee voting period, and eligible agricultural producers and private landowners across the country should receive ballots beginning the week of Jan. 5.  

Elections are occurring in certain Local Administrative Areas (LAA) for these committee members who make important decisions about how federal farm programs are administered locally. Producers and landowners must return ballots to their local FSA county office or have their ballots postmarked by Feb. 2, 2026, for those ballots to be counted. Newly elected members will take office on March 2, 2026. 

To be eligible to vote in the county committee elections, producers must participate or cooperate in a USDA program and be assigned to the LAA that is up for election. Each year, at least one LAA in each COC jurisdiction is up for election on a three-year rotation, and each producer is assigned to vote in a single LAA. A cooperating producer is someone who has provided information about their farming or ranching operation to FSA, even if they have not applied or received program benefits.    

For purposes of FSA county committee elections, every member of an American Indian tribe is considered an agricultural landowner if the land on which the tribal member’s voting eligibility is based is tribally owned or held in trust by the U.S. for the tribe, even if the individual does not personally produce a commodity on that land.

Tribal agricultural landowners 18 years and older can contact their local FSA county office to register to vote.    

Nationwide, more than 7,700 dedicated members of the agriculture community serve on FSA county committees. The committees are comprised of three to 11 members who serve three-year terms. Committee members play a key role in how FSA delivers disaster recovery, safety-net, conservation, commodity and price support programs, as well as making decisions on county office employment and other agricultural issues.    

Ballots must be postmarked or delivered in person to the local FSA office by close of business Feb. 2, 2026, to be counted. Newly elected committee members will take office March 2, 2026. Producers can identify LAAs up for election through a geographic information system locator tool available at fsa.usda.gov/elections and may confirm their LAA by contacting their local FSA office. Eligible voters who do not receive a ballot in the mail can request one from their local FSA county office.       

Visit fsa.usda.gov/elections for more information on county committee elections. To learn more about FSA programs, producers can contact their local USDA Service Center.   

Top of page

USDA Opens Enrollment for Dairy Margin Coverage for 2026

The U.S. Department of Agriculture (USDA) announced the enrollment period for the Dairy Margin Coverage (DMC) program for the 2026 coverage year, an important safety net program that provides producers with price support to help offset milk and feed price differences. Dairy producers can enroll in DMC from January 12, 2026, to February 26, 2026.  

Top of page

Disaster Set-Aside and Distressed Borrower Set-Aside Programs

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.

Below is a list of the current disaster designations in Kentucky and their respective application deadlines:

Current Disaster Designations for Kentucky

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 local USDA 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.

Top of page

Applying for FSA Direct Loans

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.  

Top of page

Current Farm Loans and Farm Programs Interest Rates - January 2026