PROGRAMS

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UNITED STATES DEPARTMENT OF AGRICULTURE

FARM SERVICE AGENCY FACT SHEET August 2016

Farm Service Agency Programs

BACKGROUND

The Farm Service Agency (FSA) is an agency 

of the U.S. Department of Agriculture (USDA) 

that serves all farmers, ranchers and agricultural 

partners through the delivery of effective, efficient 

agricultural programs for all Americans. The 

agency provides America’s farmers with a strong 

safety net through the administration of farm 

commodity and disaster programs. FSA’s longstanding tradition of conserving the nation’s natural 

resources continues through the Conservation 

Reserve Program (CRP). The agency provides 

credit to agricultural producers who are unable 

to receive private, commercial credit, including 

special emphasis on beginning, minority and 

women farmers and ranchers, and purchases and 

delivers commodities for use in international 

humanitarian food programs.

Following are programs and services offered by 

FSA.

AGRICULTURAL MEDIATION PROGRAM

The USDA Agricultural Mediation Program makes 

grants to state-designated entities that provide 

alternative dispute resolution (ADR) through 

mediation to agricultural producers, their lenders 

and others directly affected by the actions of 

certain USDA agencies. In mediation, a trained, 

impartial mediator helps participants review 

and discuss their conflicts, identify options to 

resolve disputes and agree on solutions. Ideally, 

this process helps to avoid expensive and timeconsuming administrative appeals and/or litigation. 

These grants are administered by FSA. Cases 

covered by the grants include agricultural loans, 

whether made by USDA or commercial lenders, 

and disputes involving USDA actions on farm and 

conservation programs, wetland determinations, 

rural water loan programs, grazing on national 

forest system lands, pesticides, rural housing and 

business loans and crop insurance.

AGRICULTURE RISK COVERAGE AND 

PRICE LOSS COVERAGE PROGRAM

The 2014 Farm Bill authorized the Agriculture 

Risk Coverage (ARC) and Price Loss Coverage 

(PLC) Program, which is administered by FSA. 

ARC and PLC provide revenue and price loss 

payments to eligible producers for the 2014 

through 2018 crop years. For more information, 

visit www.fsa.usda.gov/arc-plc.

BEGINNING FARMERS AND RANCHERS 

LOANS

Each fiscal year, FSA targets a portion of its direct 

and guaranteed farm ownership and operating loan 

funds to beginning farmers and ranchers. FSA 

makes and guarantees loans to beginning farmers 

and ranchers who are unable to obtain financing 

from commercial lenders. A beginning farmer or 

rancher is an individual or entity who (1) has not

operated a farm or ranch for more than 10 years, 

(2) meets the loan eligibility requirements of 

the program to which he/she is applying, (3) 

substantially participates in the operation and 

(4) for farm ownership loan purposes, does not 

own a farm greater than 30 percent of the median 

size farm in the county and meet training and 

experience requirements. For more information, 

visit www.fsa.usda.gov/farmloans.

BIOMASS CROP ASSISTANCE PROGRAM

The Biomass Crop Assistance Program (BCAP) 

is a voluntary program for agricultural and 

forestland owners and operators. BCAP supports 

the production and use of biomass crops for 

conversion to bioenergy or for the development of 

bio-based products. BCAP can include 1) Project 

Areas: Supports establishing and maintaining 

eligible crops up to five years for annual and 

non-woody perennial crops or up to 15 years for

woody perennial crops for conversion to bioenergy

or bio-based products. Support may include annual

payments and up to 50 percent cost-share to 

establish eligible crops; and 2) Matching Payments: 
FACT SHEET

Farm Service Agency Programs August 2016

Assists agricultural and forest land owners and 

operators with retrieving eligible farm and forestry 

residues to a qualified Biomass Conversion 

Facility. The 2014 Farm Bill reauthorized BCAP 

through fiscal year 2018. For more information, 

visit www.fsa.usda.gov/bcap.

BOLL WEEVIL ERADICATION LOAN 

PROGRAM

The Boll Weevil Eradication Loan Program 

provides low interest loans to nonprofit 

organizations that work collaboratively with 

state agencies, USDA’s Animal and Plant Health 

Inspection Service and the National Cotton Council 

to eradicate the boll weevil. The program objective 

is to assist producers and state government 

agencies in the eradication of boll weevils from 

cotton producing areas and ensuring the pest is not 

re-introduced.

CONSERVATION CONTRACTS

Conservation Contracts are available to persons 

with FSA loans secured by real estate who may 

qualify for cancellation of a portion of their FSA 

indebtedness in exchange for a conservation 

contract with a term of 50, 30 or 10 years. 

A conservation contract is a voluntary legal 

agreement that restricts the type and amount of 

development and farming practices that may 

take place on portions of a landowner’s property. 

Contracts may be established on marginal cropland 

and other environmentally sensitive lands for 

conservation, recreation and wildlife purposes. To 

learn more, visit www.fsa.usda.gov/farmloans

and select the “loan servicing” topic.

CONSERVATION LOAN PROGRAM

FSA guarantees conservation loans to implement 

conservation techniques that will conserve 

natural resources. The loans are available from 

lenders working with FSA and funds can be used 

to implement conservation practices approved 

by the Natural Resources Conservation Service 

(NRCS), such as the installation of conservation 

structures; establishment of forest cover; 

installation of water conservation measures; 

establishment or improvement of permanent 

pastures; implementation of manure management 

and the adaptation of other emerging or existing 

conservation practices, techniques or technologies. 

For more information, visit 

www.fsa.usda.gov/farmloans.

CONSERVATION RESERVE PROGRAM

The Conservation Reserve Program (CRP) is 

a voluntary program available to agricultural 

producers to plant long-term, resource-conserving 

grasses or trees on environmentally sensitive 

farmland to improve the quality of water, control 

soil erosion and enhance wildlife habitat. In return, 

FSA provides participants with rental payments 

and cost-share assistance. Contract duration is 

between 10 and 15 years. For more information, 

visit www.fsa.usda.gov/crp.

CONSERVATION RESERVE 

ENHANCEMENT PROGRAM

The Conservation Reserve Enhancement Program 

(CREP) is a part of the CRP whereby non-federal 

partners and resources are coupled with federal 

resources to address high-priority conservation 

concerns within a State. CREP is a voluntary 

program that helps agricultural producers protect 

environmentally sensitive land, decrease erosion, 

restore wildlife habitat and safeguard ground and 

surface water. For more information, visit 

www.fsa.usda.gov/conservation.

CONSERVATION RESERVE PROGRAM – 

GRASSLANDS

CRP Grasslands is a voluntary program that helps 

landowners and operators protect grassland, 

including rangeland, pastureland and certain other 

lands, while maintaining the areas as grazing lands. 

The program emphasizes support for grazing 

operations, plant and animal biodiversity and 

grassland and land containing shrubs and forbs 

under the greatest threat of conversion. For more 

information, visit www.fsa.usda.gov/crp.

CONSERVATION RESERVE PROGRAM –

STATE ACRES FOR WILDLIFE 

ENHANCEMENT

State Acres for Wildlife Enhancement (SAFE) 

is a voluntary program available under CRP’s 

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continuous enrollment authority. SAFE is designed 

to address state and regional high-priority wildlife 

objectives. Producers within a SAFE area can 

submit offers to voluntarily enroll acres in CRP 

contracts for 10-15 years. In exchange, producers 

receive annual CRP rental payments, incentives 

and cost-share assistance to establish, improve, 

connect or create higher-quality wildlife habitat. 

For more information, visit

www.fsa.usda.gov/conservation.

DAIRY INDEMNITY PAYMENT PROGRAM

Dairy Indemnity Payment Program (DIPP) 

pays dairy producers when a public regulatory 

agency directs them to remove their raw milk 

from the commercial market because it has been 

contaminated by pesticides, nuclear radiation or 

fallout, or toxic substances and chemical residues 

other than pesticides. Payments are made to 

manufacturers of dairy products only for products 

removed from the market because of pesticide 

contamination. For more information, visit 

www.fsa.usda.gov/dairy.

DAIRY PRODUCT DONATION PROGRAM

The Dairy Product Donation Program (DPDP) is 

authorized by the 2014 Farm Bill through 

Dec. 31, 2018. The DPDP addresses low margins 

for dairy operations by using Commodity Credit 

Corporation (CCC) funds to purchase dairy 

products for donation to public and private 

nonprofit organizations that provide nutrition 

assistance to low-income populations. Purchases 

are only made by USDA during periods of low 

margins. This program does not involve dairy 

operator or nutrition assistance enrollment. The 

FSA and the Food and Nutrition Service (FNS) 

administer DPDP. For more information, visit 

www.fsa.usda.gov/dairy.

DIRECT FARM OWNERSHIP LOANS

FSA direct farm ownership loans may be made to 

purchase farmland, construct or repair buildings 

and other fixtures and promote soil and water 

conservation. To qualify for a direct loan, the 

applicant must be unable to obtain credit from 

commercial credit sources, able to show sufficient 

repayment ability and pledge enough collateral to 

fully secure the loan. A percentage of loan funds 

is targeted to beginning farmers and ranchers and 

minority applicants. To learn more, visit 

www.fsa.usda.gov/farmloans.

DIRECT FARM OPERATING LOANS

FSA direct farm operating loans may be made to 

purchase items such as livestock, farm equipment, 

feed, seed, fuel, farm chemicals, insurance and 

other operating expenses. They can also be used 

to pay for minor improvements to buildings, costs 

associated with land and water development, 

family subsistence and refinancing debts under 

certain conditions. To qualify for a direct loan, 

the applicant must be unable to obtain credit from 

commercial credit sources, able to show sufficient 

repayment ability and pledge enough collateral to 

fully secure the loan. A percentage of loan funds 

are targeted to beginning farmers and ranchers and 

minority applicants. To learn more, visit 

www.fsa.usda.gov/farmloans. 

DOWN PAYMENT FARM OWNERSHIP 

LOANS

Down payment farm ownership loans were 

developed to help targeted underserved and 

beginning farmers and ranchers purchase a farm 

or ranch. These loans provide a way for retiring 

farmers to transfer their land to a future generation 

of farmers and ranchers. The applicant provides a 

5 percent down payment; FSA provides 45 percent 

of the needed loan funds at a reduced interest rate 

and other financing provides the remaining 

50 percent. To learn more, visit 

www.fsa.usda.gov/farmloans.

ECONOMIC ADJUSTMENT ASSISTANCE 

TO USERS OF UPLAND COTTON

The Commodity Credit Corporation (CCC) issues 

payments to eligible domestic users of upland 

cotton. Payments are made to eligible domestic 

users who enter into an agreement with the CCC. 

The payment rate is 3 cents per pound beginning 

Aug. 1, 2012. Proceeds received under this 

program must be used for capital investments that 

relate to manufacturing upland cotton into cotton 

products. For more information, visit 

www.fsa.usda.gov/daco.

FACT SHEET

Farm Service Agency Programs August 2016

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FACT SHEET

Farm Service Agency Programs August 2016

EMERGENCY ASSISTANCE FOR 

LIVESTOCK, HONEYBEES AND 

FARM-RAISED FISH PROGRAM

The Emergency Assistance for Livestock, 

Honeybees and Farm-Raised Fish Program 

(ELAP) provides payments to eligible producers 

of livestock, honeybees and farm-raised fish 

to help compensate for losses due to disease 

(including cattle tick fever), adverse weather or 

other conditions, such as blizzards and wildfires, as 

determined by the Secretary. ELAP was authorized 

by the 2014 Farm Bill as a permanent program and 

provides retroactive authority to cover losses that 

occurred on or after Oct. 1, 2011. ELAP assistance 

is provided for losses not covered by the Livestock 

Forage Disaster Program (LFP) and the Livestock 

Indemnity Program (LIP). For more information, 

visit http://disaster.fsa.usda.gov.

EMERGENCY CONSERVATION PROGRAM

The Emergency Conservation Program (ECP) 

provides funding for farmers and ranchers to 

rehabilitate farmland damaged by wind erosion, 

floods, hurricanes or other natural disasters, and 

for carrying out emergency water conservation 

measures during periods of severe drought. The 

natural disaster must create new conservation 

problems, which, if not treated, would 1) impair 

or endanger the land, 2) materially affect the 

productive capacity of the land, 3) represent 

unusual damage that, except for wind erosion, 

is not the type likely to recur frequently in the 

same area and 4) be so costly to repair that 

federal assistance is or will be required to return 

the land to productive agricultural use. Subject 

to availability of funds, locally elected county 

committees are authorized to implement ECP 

for all disasters except drought, which may be 

authorized by the FSA national office. Eligible ECP 

participants may receive financial assistance of up 

to 75 percent of the cost to implement approved 

emergency land rehabilitation practices as 

determined by county FSA committees; qualified 

limited resource producers may receive financial 

assistance of up to 90 percent. To learn more, visit 

www.fsa.usda.gov/conservation.

EMERGENCY FOREST RESTORATION 

PROGRAM

The Emergency Forest Restoration Program 

(EFRP) provides payments to eligible owners of 

rural nonindustrial private forest land in order to 

carry out emergency measures to restore forest 

health on land damaged by natural disaster events 

such as floods, hurricanes or other natural disasters. 

Subject to availability of funds, locally elected 

county committees are authorized to implement 

EFRP for all disasters except drought and insect 

infestations, which may be authorized by the FSA 

national office. Eligible EFRP participants may 

receive financial assistance of up to 75 percent of 

the cost to implement approved emergency forest 

restoration practices as determined by county FSA 

committees. To learn more, visit 

http://disaster.fsa.usda.gov.

EMERGENCY LOAN PROGRAM

FSA provides emergency loans (EM) to help 

producers recover from production and physical 

losses due to drought, flooding, other natural 

disasters or quarantine. Ems may be made to 

farmers and ranchers who cannot obtain credit 

from commercial sources and own or operate land 

located in a county declared by the President as 

a disaster area or designated by the Secretary of 

Agriculture as a disaster area or quarantine area 

(for physical losses only, the FSA Administrator 

may authorize emergency loan assistance). 

Emergency loan funds may be used to 1) restore 

or replace essential property, 2) pay all or part 

of production costs associated with the disaster 

year, 3) pay essential family living expenses, 4) 

reorganize the farming operation and 5) refinance 

certain debts. For more information, visit 

http://disaster.fsa.usda.gov.

EXTRA LONG STAPLE COTTON 

COMPETITIVENESS PAYMENTS

Extra Long Staple (ELS) Cotton Competitiveness 

Payments are made to domestic users and 

exporters of ELS cotton when the market prices 

of domestically produced versus foreign grown 

ELS cotton are such that payments are necessary to 

improve the competitiveness of domestically

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FACT SHEET

Farm Service Agency Programs August 2016

produced cotton in the world market. For more 

information, visit www.fsa.usda.gov/daco.

FARM STORAGE FACILITY LOANS

Farm storage facility loans provide low-interest 

financing for producers to build or upgrade farm 

storage and handling facilities to store eligible 

commodities they produce, including cold 

storage facilities, bulk tanks, storage facilities, 

new or used handling and storage equipment, 

portable or permanently affixed, and storage 

and handling trucks. A producer may borrow 

up to $500,000 per loan with a minimum down 

payment of 15 percent and loan terms are up to 

12 years, depending on the amount of the loan. 

In addition, FSA provides a microloan option 

for producers who require financing of up to 

$50,000 with a 5 percent down payment and loan 

terms of three, five or seven years. Used storage 

structures, equipment and storage and handling 

trucks are eligible for three or five years only and 

the maximum amount allowed for a storage or 

handling truck is $100,000. Eligible commodities 

include corn, grain sorghum, rice, soybeans, oats, 

peanuts, wheat, barley, minor oilseeds, pulse 

crops, hay, honey, renewable biomass, fruits 

and vegetables, floriculture, hops, maple sap, 

milk, cheese, butter, yogurt, eggs, unprocessed 

meat and poultry, rye and aquaculture, excluding 

systems that maintain live animals through uptake 

and discharge of water. For more information, 

visit www.fsa.usda.gov/pricesupport.

FARMABLE WETLANDS PROGRAM

The Farmable Wetlands Program (FWP) is a 

voluntary program to restore up to 750,000 acres 

of farmable wetlands and associated buffers by 

improving the land’s hydrology and vegetation. 

Eligible producers can enroll eligible land in 

the FWP through the CRP. Contract duration is 

between 10 and 15 years. FWP is designed to 

prevent degradation of wetland areas, increase 

sediment trapping efficiencies, improve water 

quality, prevent soil erosion and provide habitat 

for waterfowl and other wildlife. For more 

information, visit 

www.fsa.usda.gov/conservation.

FEEDSTOCK FLEXIBILITY PROGRAM

The Feedstock Flexibility Program (FFP) is 

designed to avoid sugar loan forfeitures to CCC 

by diverting excess sugar in the marketplace 

to bioenergy production. Every quarter, USDA 

announces whether it plans to purchase sugar 

for the purpose of bioenergy production. Raw, 

refined and in-process sugars are eligible for 

purchase. Such sugar can be purchased from any 

marketer located in the United States. For more 

information, visit 

www.fsa.usda.gov/pricesupport.

FOREIGN FOOD ASSISTANCE

FSA procures agricultural commodities that 

are donated to international relief agencies to 

help feed people around the world. The Foreign 

Agricultural Service (FAS) of USDA organizes 

the delivery of the donated food to international 

development and humanitarian organizations 

operating in dozens of countries. Food donations 

also assist in the FAS Food for Progress Program, 

which assists countries working to transition 

to market-oriented economies. For more 

information, visit www.fsa.usda.gov/daco.

GRASSROOTS SOURCE WATER 

PROTECTION PROGRAM

The Grassroots Source Water Protection Program 

(GSWPP) is a joint effort between FSA and 

the nonprofit National Rural Water Association 

(NRWA) designed to help prevent source water 

pollution in states through voluntary practices 

installed by producers and other landowners 

at the local level. GSWPP relies on the onsite 

technical assistance capabilities of each state’s 

rural water association in those states that 

operate a source water protection program. These 

associations deliver assistance in developing 

source water protection plans within watersheds 

with the goal of preventing contamination of 

drinking water supplies. For more information, 

visit www.fsa.usda.gov/conservation.

GRAZE-OUT PROGRAM

The Graze-Out Program provides for payments to 

eligible producers who elect to use their acreage

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FACT SHEET

Farm Service Agency Programs August 2016

planted to wheat, barley, oats or triticale for 

grazing by livestock and agree to forgo any other 

harvesting of the commodity on such acreage 

during the applicable crop year. Graze-out 

payments are subject to the same basic eligibility 

requirements as commodity loans and, when 

available, loan deficiency payments.

GUARANTEED FARM OWNERSHIP 

LOANS

FSA guaranteed loans provide lenders (banks, 

Farm Credit System institutions, credit unions) 

with a guarantee of up to 95 percent of the loss 

of principal and interest on a loan. Farmers 

and ranchers apply to an agricultural lender, 

which then arranges for the guarantee. The FSA 

guarantee permits lenders to make agricultural 

credit available to farmers who do not meet 

the lender’s normal underwriting criteria. A 

percentage of guaranteed loan funds is targeted 

to beginning farmers and ranchers and minority 

applicants. Guaranteed farm ownership loans may 

be made to purchase farmland, construct or repair 

buildings and other fixtures, develop farmland 

to promote soil and water conservation or to 

refinance debt. To learn more, visit 

www.fsa.usda.gov/farmloans.

GUARANTEED OPERATING LOANS

FSA guaranteed loans provide lenders (banks, 

Farm Credit System institutions, credit unions) 

with a guarantee of up to 95 percent of the loss 

of principal and interest on a loan. Farmers 

and ranchers apply to an agricultural lender, 

which then arranges for the guarantee. The FSA 

guarantee permits lenders to make agricultural 

credit available to farmers who do not meet 

the lender’s normal underwriting criteria. A 

percentage of guaranteed loan funds is targeted 

to beginning farmers and ranchers and minority 

applicants. Guaranteed operating loans may be 

made to purchase items needed, such as livestock, 

farm equipment, feed, seed, fuel, farm chemicals, 

repairs, insurance and other operating expenses. 

Operating loans also can be used to pay for minor 

improvements to buildings, costs associated 

with land and water development, family living 

expenses and to refinance debts under certain

conditions. To learn more, visit 

www.fsa.usda.gov/farmloans.

HIGHLY FRACTIONATED INDIAN LAND 

LOANS

Highly fractionated Indian land loans provide 

loans to qualified intermediary lenders that 

will relend the funds to qualified tribes and 

individuals to reduce or eliminate fractioned 

ownership interests of Indian lands. Participating 

intermediary lenders must be approved by FSA. 

The lenders may be private and tribal nonprofit 

corporations, public agencies, Indian tribes or 

lenders subject to federal or state regulation (such 

as a credit union or other financial institution). 

To learn more, visit http://www.fsa.usda.gov/

Assets/USDA-FSA-Public/usdafiles/FactSheets/

archived-fact-sheets/highly_fractionated_

indian_land.pdf.

HOMESTEAD PROTECTION PROGRAM 

If the FSA has exhausted all loan servicing 

options and must take real property into 

inventory, the Homestead Protection Program 

allows the former owner to lease, with an option 

to purchase, their primary residence and up to 

10 adjoining acres for up to five years if they 

meet all eligibility requirements.

INDIAN TRIBAL LAND ACQUISITION 

PROGRAM

Indian Tribal Land Acquisition Program (ITLAP) 

loans enable Indian tribes to purchase privately 

held lands that lie within their reservations. Loan 

funds may be used to pay expenses incidental 

to the purchase of the land, but not for land 

development.

LAND CONTRACT GUARANTEES

Guarantees are available for the owner of a farm 

who sells real estate through a land contract 

to a beginning or targeted underserved farmer. 

The guarantee provides an incentive to sell to 

individuals in these groups as it reduces the 

financial risk to the seller in the event of default. 

FSA offers two types of guarantees: a seller may 

request either a Prompt Payment Guarantee of

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FACT SHEET

Farm Service Agency Programs August 2016

up to the amount of three amortized annual 

installments plus the cost of any related real estate 

taxes and insurance; or a Standard Guarantee of 

90 percent of the outstanding principal balance 

under the land contract. To qualify for assistance, 

buyers must meet eligibility requirements similar 

to those for the Guaranteed and Direct Farm 

Ownership programs.

LIVESTOCK FORAGE DISASTER 

PROGRAM

The Livestock Forage Disaster Program (LFP) 

provides compensation to eligible livestock 

producers who have suffered grazing losses 

for covered livestock on land that is native 

or improved pastureland with permanent 

vegetative cover or is planted specifically for 

grazing. The grazing losses must be due to a 

qualifying drought condition during the normal 

grazing period for the county. LFP also provides 

compensation to eligible livestock producers 

who have suffered grazing losses on rangeland 

managed by a federal agency if the eligible 

livestock producer is prohibited by the federal 

agency from grazing the normal permitted 

livestock on the managed rangeland due to a 

qualifying fire. For more information, visit 

http://disaster.fsa.usda.gov.

LIVESTOCK INDEMNITY PROGRAM

The Livestock Indemnity Program (LIP) provides 

benefits to livestock producers for livestock 

deaths in excess of normal mortality caused by 

adverse weather. In addition, LIP covers attacks 

by animals reintroduced into the wild by the 

federal government or protected by federal law, 

including wolves and avian predators. For more 

information, visit http://disaster.fsa.usda.gov.

MARGIN PROTECTION PROGRAM FOR 

DAIRY

The Margin Protection Program for Dairy (MPPDairy) is a voluntary risk management program 

for dairy producers authorized by the 2014 Farm 

Bill through Dec. 31, 2018. The MPP-Dairy 

offers protection to dairy producers when the 

difference between the all milk price and the 

average feed cost (the margin) falls below a 

certain dollar amount selected by the producer. 

For more information, visit 

www.fsa.usda.gov/dairy.

MICROLOANS

Microloans are a special subcategory of direct 

operating and farm ownership loans that provide 

flexible access to credit for small farming 

operations, including specialty, niche and local 

food producers. The Microloan Program includes 

a simplified loan application process and minimal 

paperwork. It provides additional flexibility in 

certain loan eligibility requirements, reduces 

documentation requirements and streamlines 

financial planning for small operations. Eligible 

applicants may obtain a microloan for up to 

$50,000. For more information, visit 

www.fsa.usda.gov/microloans. 

NONINSURED CROP DISASTER 

ASSISTANCE PROGRAM

Noninsured Crop Disaster Assistance Program 

(NAP) provides financial assistance to noninsurable crop losses due to drought, flood, 

hurricane or other natural disasters. Landowners, 

tenants or sharecroppers who share in the risk 

of producing an eligible crop are eligible. 

Eligible crops are those where crop insurance 

is unavailable. Also eligible for NAP coverage 

are controlled-environment crops (mushroom 

and floriculture), specialty crops (honey and 

maple sap) and value loss crops (aquaculture, 

Christmas trees, ginseng, ornamental nursery 

and turf-grass sod). The 2014 Farm Bill allows 

producers to purchase higher levels of coverage 

beyond the catastrophic coverage level for an 

additional premium. New, limited resource and 

targeted underserved farmers are eligible for 

free catastrophic coverage and higher levels of 

coverage for a significantly discounted premium. 

For more information, visit 

www.fsa.usda.gov/nap.

NONRECOURSE MARKETING 

ASSISTANCE LOANS AND LOAN 

DEFICIENCY PAYMENT

Nonrecourse marketing assistance loans (MALs) 

provide producers interim financing at harvest Page 7
FACT SHEET

Farm Service Agency Programs August 2016

time to help them meet cash flow needs when 

market prices are typically at harvest-time lows. 

MALs for covered commodities are nonrecourse 

because the commodity is pledged as loan 

collateral and producers have the option of 

delivering the pledged collateral to the CCC as 

full payment for the loan at maturity. A producer 

who is eligible to obtain a loan, but who agrees 

to forgo the loan, may obtain a loan deficiency 

payment (LDP). An LDP is the amount by 

which the applicable loan rate exceeds the 

alternative loan repayment rate for the respective 

commodity. For more information, visit 

www.fsa.usda.gov/pricesupport.

PRIMARY LOAN SERVICING PROGRAM

The Primary Loan Servicing Program is available 

to eligible borrowers who, due to reasons beyond 

their control, are unable to make the scheduled 

payments on their debt to the government. 

Restructuring options may include consolidation, 

rescheduling or re-amortization, deferral, interest 

rate reduction and write down. The program 

allows delinquent or financially distressed FSA 

borrowers to become current on their loans and 

regain a more solid financial footing for the long 

term.

RECOURSE SEED COTTON LOANS

Recourse seed cotton loans are made available 

by the CCC to producers through March 31 of 

the year following the calendar year in which 

the cotton crop is normally harvested. Seed 

cotton pledged as collateral for a loan must be 

tendered to CCC by an eligible producer and 

must be in existence and in good condition at 

the time of disbursement of loan proceeds, in 

addition to other requirements. A producer must 

repay the seed cotton loan principal, interest 

and the charges before pledging the cotton for 

a nonrecourse loan or before a loan deficiency 

payment can be approved. Seed cotton loans 

mature on demand by CCC but no later than 

May 31 following the calendar year in which such 

crop is normally harvested. For more information, 

visit www.fsa.usda.gov/pricesupport.

REIMBURSEMENT TRANSPORTATION 

COST PAYMENT PROGRAM FOR 

GEOGRAPHICALLY DISADVANTAGED 

FARMERS AND RANCHERS

The 2014 Farm Bill reauthorized the 

Reimbursement Transportation Cost Payment 

Program for Geographically Disadvantaged 

Farmers and Ranchers (RTCP) to reimburse 

geographically disadvantaged producers with 

a portion of the cost to transport agricultural 

commodities or inputs used to produce an 

agricultural commodity. For more information, 

visit www.fsa.usda.gov/pricesupport.

SUGAR LOAN PROGRAM AND SUGAR 

MARKETING ALLOTMENTS 

The Sugar Loan Program provides nonrecourse 

loans to processors of domestically grown 

sugarcane and sugar beets. This program provides 

producers with interim financing at harvest 

time so that producers do not need to sell their 

commodity when market prices are typically at 

harvest-time lows. The 2014 Farm Bill authorizes 

FSA to administer nonrecourse loans for the 

2014 through 2018 crops on behalf of the CCC. 

For more information, visit 

www.fsa.usda.gov/pricesupport.

SUGAR STORAGE FACILITY LOANS

FSA may make loans to processors of 

domestically produced sugarcane and sugar beets 

for the construction or upgrading of storage and 

handling facilities for raw sugars and refined 

sugars. Loans may be made only for the purchase 

and installation of eligible storage facilities, 

permanently affixed handling equipment or 

the remodeling of existing facilities. For more 

information, visit 

www.fsa.usda.gov/pricesupport.

TREE ASSISTANCE PROGRAM 

The 2014 Farm Bill reauthorized the Tree 

Assistance Program (TAP) to provide financial 

assistance to qualifying orchardists and nursery 

tree growers to replant or rehabilitate eligible 

trees, bushes and vines damaged by natural 

disasters. The 2014 Farm Bill established TAP as

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FACT SHEET

Farm Service Agency Programs August 2016

a permanent disaster program and provides 

retroactive authority to cover eligible losses back 

to Oct. 1, 2011. For more information, visit 

http://disaster.fsa.usda.gov.

UNITED STATES WAREHOUSE ACT

The United States Warehouse Act (USWA) 

authorizes the Secretary to issue licenses to public 

warehouse operators who voluntarily request 

regulation through licensing under the USWA to 

store agricultural products, including bulk grain, 

cotton, peanuts, sugar and other agricultural 

products. FSA administers USWA by providing 

licensing of warehouse operators, regulation of 

paper and electronic warehouse receipt providers, 

protection for depositors through bonding 

or other financial assistance and compliance 

examinations. The USWA provides for the use 

of warehouse receipts and requires warehouse 

operators to accept agricultural products for 

storage without discrimination. Under the 

USWA, the facilities meet and are maintained at 

established standards. The USWA allows FSA 

to enforce a uniform regulatory system for the 

protection of depositors and the agricultural 

commodities stored in the licensed facilities. For 

more information, visit www.fsa.usda.gov/daco.

YOUTH LOANS

FSA makes loans to individual rural youth, 

between the ages of 10 and 20 years, to establish 

and operate agriculture-related income-producing 

projects of modest size in connection with their 

participation in 4-H clubs, the Future Farmers of 

America, Tribal Youth Organizations and similar 

organizations. The project must be planned and 

operated with the help of the organization adviser, 

produce sufficient income to repay the loan and 

provide the youth with practical business and 

educational experience. For more information, 

visit www.fsa.usda.gov/youth-loans.

FOR MORE INFORMATION

This fact sheet is provided for informational 

purposes only; other restrictions and eligibility 

requirements may apply. For more information 

about FSA and its programs, visit your local FSA 

office or online at http://offices.usda.gov.

________________________________________

In accordance with Federal civil rights law and U.S. Department of Agriculture (USDA) civil rights regulations and policies, 

the USDA, its Agencies, offices, and employees, and institutions 

participating in or administering USDA programs are prohibited from discriminating based on race, color, national origin, 

religion, sex, gender identity (including gender expression), 

sexual orientation, disability, age, marital status, family/parental status, income derived from a public assistance program, 

political beliefs, or reprisal or retaliation for prior civil rights 

activity, in any program or activity conducted or funded by 

USDA (not all bases apply to all programs). Remedies and complaint filing deadlines vary by program or incident.

Persons with disabilities who require alternative means of communication for program information (e.g., Braille, large print, 

audiotape, American Sign Language, etc.) should contact the responsible Agency or USDA’s TARGET Center at (202) 720-2600 

(voice and TTY) or contact USDA through the Federal Relay 

Service at (800) 877-8339. Additionally, program information 

may be made available in languages other than English.

To file a program discrimination complaint, complete the USDA 

Program Discrimination Complaint Form, AD-3027, found 

online at http://www.ascr.usda.gov/complaint_filing_cust.html 

and at any USDA office or write a letter addressed to USDA and 

provide in the letter all of the information requested in the form. 

To request a copy of the complaint form, call (866) 632-9992. 

Submit your completed form or letter to USDA by:

1) mail: U.S. Department of Agriculture Office of the Assistant

 Secretary for Civil Rights 1400 Independence Avenue, SW

 Washington, D.C. 20250-9410;

2) fax: (202) 690-7442; or

3) email: program.intake@usda.gov.

USDA is an equal opportunity provider, employer, and lender.

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