Farm Loans

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UNITED STATES DEPARTMENT OF AGRICULTURE

FARM SERVICE AGENCY FACT SHEET

October 2017

Disaster Set-Aside Program

OVERVIEW

When Farm Service Agency (FSA) borrowers located 

in designated disaster areas or contiguous (adjoining) 

counties are unable to make their scheduled payment 

on any FSA debt, FSA is authorized to consider setaside of one payment to allow the operation to continue. 

This program is authorized under Section 331A of the 

Consolidated Farm and Rural Development Act.

DESIGNATION AND NOTIFICATION

The first time in a calendar year that a county in which 

a borrower farms, or a contiguous county, is designated 

as a disaster area by the president or secretary of 

agriculture, farmers indebted to FSA will be notified 

of the availability of the Disaster Set-Aside Program 

(DSA).

APPLICATION

Borrowers have eight months from the date of 

designation to apply. A complete application for DSA 

consists of the following items:

• A written request for DSA signed by all parties 

liable for the debt;

• Actual production, income and expense records for 

the production and marketing period in which the 

disaster occurred (unless the agency already has this 

information); and

• Other items as required based on the individual 

application.

ELIGIBILITY AND LIMITATIONS

Eligibility to receive the DSA will primarily be 

determined based on the following criteria:

• As a direct result of the disaster, the borrower is 

unable to pay all family living and farm operating 

expenses, payments to other creditors, and 

payments to FSA;

• The borrower must have operated a farm or ranch 

in a county designated as a disaster area or in a 

contiguous county. Each loan considered for DSA 

must have been outstanding at the time of the 

disaster;

• The borrower must have acted in good faith and 

complied with written agreements with FSA;

• The borrower must not be in non-monetary default;

• The borrower must be current or not more than 

90 days past due on any FSA loan when the DSA 

application is completed. No loan to be set aside 

may have a remaining term of less than two years. 

Loans must not be accelerated;

• After the DSA is completed, the borrower will be 

current on all FSA loans;

• The borrower’s FSA debt has not been restructured 

since the disaster;

• The amount set aside will not exceed one year’s 

FSA payment;

• No loan may receive more than one disaster setaside unless it is later restructured; and

• The borrower must be able to develop a positive 

cash-flow projection for the coming year.

PAYMENT

Each payment set-aside must be repaid prior to the 

final maturity of the note. Any principal set-aside will 

continue to accrue interest until it is repaid.

FOR MORE INFORMATION

This fact sheet is for informational purposes only; other 

restrictions may apply. For more information about FSA 

and its programs, visit www.fsa.usda.gov or contact 

your local FSA office. To find your local FSA office, 

visit 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.