Coronavirus and USDA Assistance for Farmers

We recognize that loan-making activities are critical for annual operating and family living expenses, term investments for equipment and livestock, emergency needs, and cash flow, especially in tough times.

USDA’s Farm Service Agency is providing additional flexibilities to provide producers with credit options in response to the coronavirus pandemic. Those include:

• Where not legally prohibited, FSA will accept FAXed or scanned signatures from customers and lenders.
• FSA will follow the most current state or local guidance for use of online or virtual notary services.

FSA is currently relaxing the loan-making process and adding flexibilities for servicing direct and guaranteed loans to provide credit to producers in need.

Suspending Debt Collection and Foreclosures

USDA has temporarily suspended non-judicial foreclosures, debt offsets or wage garnishments, and referring foreclosures to the Department of Justice. USDA is working with the U.S. Attorney’s Office to stop judicial foreclosures and evictions on accounts that were previously referred to the Department of Justice.

Additionally, USDA extended deadlines for producers to respond to loan servicing actions, including loan deferral consideration for financially distressed and delinquent borrowers. In addition, for the Guaranteed Loan program, flexibilities have been made available to lenders to assist in servicing their customers.

The temporary suspension is in place until further notice and is expected to continue while the national COVID-19 disaster declaration is in place. USDA will not be accelerating or foreclosing on any direct loans, regardless of payment status, while the suspension is in effect. Although some direct loan borrowers may have received a standardized form known as the “Notice of Intent to Accelerate”, they should rest assured that USDA is not pursuing any acceleration or foreclosure. More information can be found in this January 31, 2022 FSA letter to direct loan borrowers. 

Contact the FSA office at your local USDA Service Center.

Relaxing the Loan Making Process

FSA is relaxing the loan making process and adding flexibilities for servicing direct and guaranteed loans to provide credit to producers in need. This includes:

• For direct loan applicants, FSA provides two notifications of an incomplete application. These notices give the applicant 30 calendar days total, to provide the additional information needed before the application is withdrawn.  FSA loan officials will maintain close communication with applicants who are experiencing difficulties completing application requirements due to complications from COVID-19 and may grant the applicant an extension.
• Where lien searches cannot be properly completed due to local and state government office closures, applicants may be considered eligible and processing of the loan may continue without a county records search, assuming all other eligibility and loan making criteria can be satisfied.
• Preparing loan closing documents even if FSA is unable to complete lien and record searches because of closed government buildings. Once those searches are complete, FSA would close the loan.
• Closing loans if the required lien position on the primary security is perfected, even for loans that require additional security and those filings and recordings cannot be obtained because of closed government buildings.
• Extending the repayment period of annual operating loans beyond 18 months to help borrowers survive through unique periods of financial difficulty.
• Use of video conferencing to facilitate loan closings, where notary services are not required.
• For guaranteed loans, FSA may grant an extension to guaranteed lenders that are unable to provide a complete application within the normal timeframe because of reasons outside of their control caused by COVID-19.  Because each applicant and lender’s circumstances are unique, extensions will be granted on a case-by-case basis.
• If lenders need to extend credit to a customer that would normally require an FSA guarantee, but the lender is unable to apply for a guarantee due to the various pandemic restrictions in place, FSA will be as flexible as possible when evaluating the test for credit if the lender requests a guarantee on that loan at a later time. The lender would need to clearly document why they were unable to apply for the guarantee with the initial loan due to the coronavirus pandemic situation in their local area.

Given the current uncertainty and extreme volatility of commodity prices, it is difficult to project planning prices for many commodities with a high degree of certainty.  Therefore, FSA will continue the use of commodity planning prices already approved for the current year.  However, customers must be advised of the potential budget, cash flow, and loan impacts if projected prices are unable to be realized.

Servicing Direct Loans

FSA is extending deadlines for producers to respond to application packages for Primary Loan Servicing and Distressed Loan Servicing. Financially distressed and delinquent direct loan borrowers who have been notified of the available loan servicing options will be provided an additional time to:

• submit a complete application for loan servicing,
• accept an offer of loan servicing,
• provide a response to a denial of loan servicing, or
• request homestead protection.

FSA will temporarily suspend loan accelerations, non-judicial foreclosures, and referring foreclosures to the Department of Justice. The U.S. Attorney’s Office will make the determination whether to stop foreclosures and evictions on accounts under its jurisdiction.

Servicing Guaranteed Loans

In addition to the existing guaranteed loan servicing options already available within the FSA guaranteed loan program, FSA is offering lenders additional flexibility. This includes:

• Standard Eligible Lenders (SEL) may certify that they have met all FSA requirements for annual line of credit advances and will not need FSA prior written approval.
• SEL and Certified Lender Program (CLP) lenders may certify that they have met all FSA requirements for emergency advances and will not need FSA prior written approval.
• SEL and CLP lenders may certify that they have a feasible plan for additional loans made outside of the guarantee and will not need FSA prior written approval. Loans made under the Small Business Administration’s new Paycheck Protection Program can be made at the lender’s discretion without FSA approval.

Lenders are also encouraged to submit status and default status reports online through the Lender LINC System. Lenders should contact the FSA office at their local USDA Service Center for questions related to a specific account, or any short-term payment deferral and forbearance consideration.

Disaster Set-Aside

Through January 31, 2022, FSA’s Disaster Set-Aside provision is available to direct loan borrowers who have been impacted by the pandemic. In addition, FSA will permit a second DSA for COVID-19 and a second DSA for natural disaster for those who had an initial COVID-19 DSA. Requests for a COVID-19 DSA or a second DSA must be received no later than May 1, 2022.

This enables an upcoming annual installment to be set aside for the year and added to the final installment. For annual operating loans, the loan maturity date may be extended up to twelve months in order to set aside the installment.

The DSA provision is normally used in the wake of natural disasters, and a second Disaster Set-Aside may be available for direct loan borrowers who already have a DSA in place on a loan due to another designated natural disaster.

USDA has temporarily suspended non-judicial foreclosures, debt offsets or wage garnishments, and referring foreclosures to the Department of Justice. USDA is working with the U.S. Attorney’s Office to stop judicial foreclosures and evictions on accounts that were previously referred to the Department of Justice.

Additionally, USDA extended deadlines for producers to respond to loan servicing actions, including loan deferral consideration for financially distressed and delinquent borrowers. In addition, for the Guaranteed Loan program, flexibilities have been made available to lenders to assist in servicing their customers.

The temporary suspension is in place until further notice and is expected to continue while the national COVID-19 disaster declaration is in place.

Contact the FSA office at your local USDA Service Center.

COVID-19 shutdowns have caused disruption in the milk market, and dairy producers are dumping milk as a result.

Adjustments for Dumped Milk

For the 2020 and 2021 calendar years, RMA is allowing AIPs to count dumped milk toward the milk marketings for the Dairy Revenue Protection or actual marketings for the Livestock Gross Margin for Dairy programs regardless of whether the milk was sold. Producers will still have to provide to the AIPs supporting documentation from the cooperative or milk handler verifying the actual pounds dumped and that the milk was dumped.

USDA's Risk Management Agency (RMA) began Coronavirus relief measures in March 2020 to provide program flexibilities in response to industry challenges and requests.  RMA is not only continuing applicable relief in its procedures dated June 30, 2022, RMA is also expanding these measures to include relief for producers who are physically unable to report due to reasons other than COVID-19.

Applicable relief measures include:

• Waiving the witness signature requirement for approval of Assignments of Indemnity for digital reporting and signature; or for pen-and-ink signatures when proof of debt or other pecuniary obligation is provided.
• Allowing an insured, when physically unable to report, to provide signature authority to another person at any time for any applicable program date.  This authority may also be revoked at any time by the insured.  
• When applicable, extending the deadline for RMA Regional Office Determined Yield requests when an insured is physically unable to report.
• Providing an exception to the signature deadline for written agreement offers when a producer is physically unable to sign the offer by the expiration date.

Producers should continue to work with their Approved Insurance Providers and their crop insurance agents to discuss their crop insurance questions or needs.

Producers now have more time to repay Farm Service Agency Marketing Assistance Loans (MAL), as part of the U.S. Department of Agriculture’s implementation of the Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020. The loans now mature at 12 months rather than nine, and this flexibility is available for most commodities.

About MALs

Placing commodities under loan provides producers interim financing to meet cash flow needs without having to sell their commodities when market prices are lows and allows producers to store production for more orderly marketing of commodities throughout the year.

These loans are considered nonrecourse because the commodity is pledged as loan collateral, and producers have the option of delivering the pledged collateral to the Commodity Credit Corporation (CCC) for repayment of the outstanding loan at maturity.

MAL Maturity Extension Eligibility

Effective immediately, producers of eligible commodities now have up to 12 months to repay their commodity loans. The maturity extension applies to nonrecourse loans for crop years 2018, 2019, and 2020. Eligible open loans must be in good standing with a maturity date of March 31, 2020 or later or new crop year (2019 or 2020) loans requested by September 30, 2020. All new loans requested by September 30, 2020 will have a maturity date 12 months following the date of approval.

The maturity extension for current, active loans will be automatically extended an additional three months. Loans that matured March 31 have already been automatically extended. Loans requested after September 30, 2020 will have a term of nine months.

Eligible commodities include barley, chickpeas (small and large), corn, cotton (upland and extra-long staple), dry peas, grain sorghum, honey, lentils, mohair, oats, peanuts, rice (long and medium grain), soybeans, unshorn pelts, wheat, wool (graded and nongraded); and other oilseeds, including canola, crambe, flaxseed, mustard seed, rapeseed, safflower, sunflower seed, and sesame seed. Seed cotton and sugar are not eligible.

MAL Repayment

Under the new maturity provisions, producers can still repay the loan as they would have before the extension:

• repay the MAL on or before the maturity date;
• upon maturity, by delivering or forfeiting the commodity to CCC as loan repayment; or
• after maturity, and before CCC acquires the farm-stored commodity, by repaying the outstanding MAL principle and interest.

Market Loan Gains

A Marketing Loan Gain occurs when a MAL is repaid at less than the loan principal. If market gain is applicable during the now-extended loan period, producers can receive a gain on the repayment made before the loan matures.

Acreage reporting is key to eligibility for many USDA programs, including crop insurance, safety net, disaster assistance, farm loan, and conservation programs.

Due to the coronavirus pandemic, FSA has implemented acreage reporting flexibilities. FSA can work with producers to file timely acreage reports by phone, email, online tools, and virtual meetings. Some FSA offices are open for in-person appointments, but you must call first to make an appointment.

Many FSA offices are using Microsoft Teams software to virtually meet with producers to review maps and documents for certification. Producers who want to schedule a virtual appointment can download the Microsoft Teams app on their smart phone or tablet and call the FSA office at their local USDA Service Center for an appointment. You may also use Microsoft Teams from your personal computer without downloading software.

County offices can provide producers with maps along with instructions for completing and returning the maps through either mail, email, or through commercially available free and secure online tools such as Box for file sharing and OneSpan for eSignature solutions. After planting is complete, producers should return completed maps and the acreage reporting sheet by the applicable deadline.

After completed maps and all acreage reporting information is received, FSA will make software updates and send producers the completed Report of Acreage form (FSA-578) to sign. Producers must return the signed form certifying their acreage report to the FSA office through mail, email, or the OneSpan and Box tools by the applicable deadline.

The following exception applies to acreage reporting dates:

• If the crop has not been planted by the acreage reporting date, the acreage must be reported no later than 15 calendar days after planting is completed.

FSA is also providing additional flexibilities for producers to file on acres with failed crops or crops that were prevented from planting because of extreme weather events. For insured crops, producers who timely filed a prevented planted claim with the reinsurance company but filed a Notice of Loss (CCC-576) form after the deadline will be considered timely filed for FSA purposes. For uninsured crops, producers may start a Notice of Loss by calling their FSA county office.

Noninsured Crop Disaster Assistance Program (NAP) policy holders should note that the acreage reporting date for NAP-covered crops is the earlier of the dates listed above or 15 calendar days before grazing or harvesting of the crop begins.

To file a crop acreage report, you need:

• An FSA map of your farm or ranch and your tract and field numbers,
• The intended use of your crops,
• The number of acres of crops you are reporting, and
• Approximate crop boundaries, planting patterns and dates, irrigation practices, and producer shares, and other information as directed by the local Service Center.

July 15 was a major deadline for most crops, but acreage reporting deadlines vary by county and by crop. Contact the FSA office at your local USDA Service Center for details in your county.

While support for livestock is available through the Coronavirus Food Assistance Program in some circumstances, limited markets and processing may cause livestock producers to depopulate herds. NRCS offers assistance through the Environmental Quality Incentives Program to help agricultural producers properly dispose of livestock that were depopulated because of impacts from the coronavirus pandemic.

Through the Emergency Animal Mortality Management practice, NRCS helps producers plan and cover part of the cost for disposing of livestock because of an emergency animal mortality event.

Once capacity is reached in an animal mortality facility, NRCS will help producers dispose of the remaining livestock through burying, incinerating, disposal at landfill or render, and other disposal options.

Eligibility

• To receive assistance, both an application and approved early start waiver must be filed with the local NRCS field office prior to disposal of animal carcasses.
• Producers must have farm records established with the Farm Service Agency (FSA), meet all eligibility requirements, and have application filed at the local NRCS.
• Financial assistance is limited and not all applications will be funded.
• There are payment limitations. Call the NRCS office at your local USDA Service Center. Find your local USDA Service Center at farmers.gov/service-center-locator.

Swine

Prior to payment, a swine mortality certification is required by a veterinarian or animal health specialist. Payment rates for swine include:

• Burial: $74.28 per animal unit ($89.14 for historically underserved producers)
• Carcass disposal other than burial: $111.53 per animal unit ($191.20 for historically underserved producers)
• Incineration: $219.88 per animal unit ($263.86 for historically underserved producers)
• Disposal at landfill or render: $0.05 per pound ($.0.06 for historically underserved producers)

Conversion factor: 1,000 pounds = 1 animal unit

1 animal unit = 80 weaning pigs, 3.5 market hogs, or 2 sows

Historically underserved producers, including socially disadvantaged, beginning and limited resource farmers, Indian tribes, and beginning farmers/veterans, are eligible for an increased payment rate.

To learn more about Emergency Animal Mortality Management for swine, download this fact sheet.

Livestock and Poultry

Prior to payment, a livestock or poultry mortality certification is required by a veterinarian or animal health specialist. Payment rates for livestock and poultry include:

• Disposal at landfill or render: $0.05 per pound ($.0.06 for historically underserved producers)
• In-house Composting¹: $76.88 per animal unit ($92.25 for historically underserved producers)
• Composting – Purchase Carbon Material & Mobilize Equipment¹:  $162.12 per animal unit ($277.93 for historically underserved producers)
• Carcass Disposal – Other¹: $111.53 per animal unit ($191.20 for historically underserved producers)
• Shallow Burial Hooved Animals: $128.73 per animal unit ($154.48 for historically underserved producers)
• Incineration: $219.88 per animal unit ($263.86 for historically underserved producers)
• Burial: $74.28 per animal unit ($89.14 for historically underserved producers)

1 – Costs of materials, equipment and mobilization are highly variable. Actual costs may be significantly different from payment rates.

Conversion factor: 1,000 pounds = 1 animal unit

Historically underserved producers, including socially disadvantaged, beginning and limited resource farmers, Indian tribes, and beginning farmers/veterans, are eligible for an increased payment rate.

To learn more about Emergency Animal Mortality Management for livestock and poultry, download this fact sheet.

More Information

To learn more about EQIP and assistance through the Emergency Animal Mortality Management practice, call the NRCS office at your local USDA Service Center. Find your local USDA Service Center at farmers.gov/service-center-locator.

The Pandemic Cover Crop Program (PCCP) provides agricultural producers who have coverage under most crop insurance policies a premium benefit from USDA if they planted cover crops during the 2022 crop year. PCCP, offered by USDA’s Risk Management Agency (RMA), helps farmers maintain their cover crop systems, despite the financial challenges posed by the pandemic.

To receive this benefit, producers must have reported their cover crop acreage to USDA’s Farm Service Agency by March 15, 2022.

• Pandemic Cover Crop Program (PCCP)

The Organic and Transitional Education and Certification Program (OTECP)  provides pandemic assistance to cover eligible certification and education expenses for agricultural producers who are certified organic or transitioning to organic. Applications for the 2022 signup for OTECP and the Organic Certification Cost Share Program are both due October 31, 2022.

• Organic and Transitional Education and Certification Program (OTECP)

January 27, 2021: USDA Temporarily Suspends Debt Collections, Foreclosures and Other Activities on Farm Loans for Several Thousand Distressed Borrowers Due to Coronavirus

December 1, 2020: Dec. 11 Deadline Approaching for USDA Program for Farmers and Ranchers Impacted by COVID-19

November 12, 2020: Apply Now for USDA’s Coronavirus Food Assistance Program 2

October 26, 2020: More than $7 Billion Paid in Second Round of USDA Coronavirus Food Assistance Program

September 18, 2020: USDA to Provide Additional Direct Assistance to Farmers and Ranchers Impacted by the Coronavirus

August 28, 2020: Deadline Approaching for USDA’s Coronavirus Food Assistance Program

August 11, 2020: USDA Announces More Eligible Commodities for CFAP

August 5, 2020: USDA Extends Deadlines, Defers Interest Accrual Due to COVID-19

July 9, 2020: Additional Commodities Eligible for Coronavirus Food Assistance Program

July 1, 2020: USDA Reminds Producers to Complete Crop Acreage Reports

June 25, 2020: USDA Adds Digital Options for Farmers and Ranchers to Apply for Coronavirus Food Assistance Program

June 4, 2020: USDA Issues First Coronavirus Food Assistance Program Payments

June 1, 2020: USDA Modifies Dairy Revenue Protection Sales Period

May 29, 2020: USDA Allows Extensions on Insurance Deadlines, Deferral of Interest To Help Producers Amid Coronavirus Pandemic

May 21, 2020: FSA Expands Set-Aside Loan Provision for Customers Impacted by COVID-19

May 4, 2020: USDA Allows Flexibilities for Organic Certification Amid Coronavirus Pandemic

April 17, 2020: USDA Announces Coronavirus Food Assistance Program

April 10, 2020: USDA Addresses Milk Dumping, Authorizes Other Flexibilities To Help Producers Amid Coronavirus Pandemic

April 9, 2020: USDA Announces Loan Maturity for Marketing Assistance Loans Now Extended to 12 Months

April 3, 2020: USDA Adds Additional Flexibilities for Crop Insurance to Support America’s Farmers and Ranchers 

March 27, 2020: USDA Adds Flexibilities for Crop Insurance to Support America’s Farmers and Ranchers

March 26, 2020: FSA Makes Changes to Farm Loan, Disaster, Conservation and Safety Net Programs to Make it Easier for Customers to Conduct Business

March 26, 2020: USDA Continues Conservation Planning and Programs for America’s Farmers and Ranchers

• USDA
• Coronavirus.gov
  • Small Business
• CDC
• USA.gov
• Coronavirus Guidelines for America
• COVID-19 Federal Rural Resource Guide