The Disaster Set-Aside Program (DSA) assists farmers and ranchers with existing Farm Service Agency (FSA) loans who have been impacted by natural disasters. This program provides financial relief by allowing eligible producers to move one annual installment for each loan to the end of the loan term. This set-aside installment helps producers regain their financial footing without facing immediate repayment pressure, enabling them to focus on recovery efforts.
Eligible applicants include farmers and ranchers who have an existing FSA direct loan, were current or less than 90 days past due on their loan before the disaster, and are unable to make the scheduled installment due to the disaster. Producers must demonstrate financial need and the impact of the disaster on their ability to repay the loan.
Producers are encouraged to check with their local FSA office for specific requirements, application deadlines, and additional program details.
Applications must be submitted within eight months from the date the disaster designation was declared.
To apply for the Disaster Set-Aside Program, borrowers must submit a written request to their local FSA office. The application process includes providing documentation of the disaster impact, financial need, and the inability to make the scheduled loan installment. Detailed enrollment instructions and deadlines are available through the local FSA office.
Program Features
- Loan Types: The program applies to all FSA direct loans, including Operating Loans, Farm Ownership Loans, and Emergency Loans.
- Set-Aside Terms: One installment per loan can be set aside. The set-aside amount is moved to the end of the loan term, effectively extending the loan term by one installment period.