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.

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 20 calendar days and 10 calendar days, respectively, to provide the additional information needed before the application is withdrawn.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 September 1, 2021, FSA’s Disaster Set-Aside provision is available to direct loan borrowers who have been impacted by the pandemic. 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.

This 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.

Has your operation been directly impacted by the coronavirus pandemic? USDA is implementing updates to the Coronavirus Food Assistance Program for producers of agricultural commodities marketed in 2020 who faced market disruptions due to COVID-19. This is part of a larger initiative to improve USDA pandemic assistance to producers.

USDA’s Farm Service Agency will accept new and modified CFAP 2 applications beginning April 5. Visit farmers.gov/cfap to learn more. 

On July 13, 2021 USDA announced the Pandemic Livestock Indemnity Program (PLIP). PLIP provides financial assistance to support producers of eligible swine, chickens, and turkeys depopulated from March 1, 2020, through December 26, 2020. To be eligible, depopulation of poultry or livestock must have been due to insufficient processing access resulting from the COVID-19 pandemic. Livestock and poultry also must have been physically located in the United States or a territory of the United States at the time of depopulation.

USDA’s Farm Service Agency will accept applications July 20 through September 17, 2021. Visit farmers.gov/plip to learn more about additional eligibility requirements and how to apply. 

On July 20, 2021 USDA announced the Pandemic Assistance for Timber Harvesters and Haulers program (PATHH). PATHH provides up to $200 million to support timber harvesting and timber hauling businesses that experienced a loss of at least 10 percent gross revenue from January 1 through December 1, 2020, compared to the same period in 2019. Individual loggers or truckers, or legal entities, may be eligible for up to $125,000 in financial assistance through this program. 

 USDA’s Farm Service Agency will accept applications July 22 through October 15, 2021. Visit farmers.gov/pathh to learn more about additional eligibility requirements and how to apply through 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.

Producers should continue to work with their Approved Insurance Providers (AIPs), on policies, claims, and agreements. Farmers with crop insurance questions or needs should continue to contact their insurance agents about conducting business by telephone or email.

USDA's Risk Management Agency (RMA) is working with those insurance providers to provide additional flexibilities in response to COVID-19, including:

• Allowing phone and electronic transactions for sales closing, acreage reporting and production reporting dates, including options, endorsements and their forms.
• Expanding authority for replant self-certification.
• Waiving the witness signature requirement for approval of Assignments of Indemnity.
• Allowing dumped milk to be counted as milk marketings for the Dairy Revenue Protection or actual marketings for the Livestock Gross Margin for Dairy programs.
• Extending the deadline for some Regional Office Determined Yield requests, Master Yields and Determined Irrigated Yield requests.
• Exception for producer written agreement offer signature deadline when caused by COVID-19 due to a producer’s physical inability to sign the offer by the expiration date.
• Authorizing AIPs to allow organic producers to report acreage as certified organic, or transitioning to organic, when producers certify they have requested a written certification from a certifying agent by their policy's acreage reporting date.

Electronic Notifications

For policy due dates occurring through July 15, 2021, notifications and information may be sent by phone or electronic methods between policyholders and their crop insurance agents to do the following:

• Acreage and production reporting, and sales closing dates (deadlines to buy crop insurance)
• Sales Closing, Production Reporting and Acreage Reporting Dates: To make policy elections, such as coverage level, and to report acreage and production
• Reporting Deadline for Options, Endorsements and Forms: To select options and endorsements occurring for the sales closing, production reporting date and acreage reporting deadline

Notice of the policyholder's election may be provided over the phone with appropriate documentation of the call or using electronic methods followed by their confirmation of such election in writing (via a signed, or e-signed, form) no later than 60 calendar days after the initial reporting deadline provided in the actuarial documents.

Replant Self-Certification

For crop years 2020 and 2021 replant notifications received by the AIP through December 31, 2020, and all applicable crop years through June 30, 2021. AIPs are authorized to allow self-certification replant inspections for up to 100 gross acres (before considering share) per unit in lieu of 50 acres.

Authorized crops for self-certification of up to 100 acres for replant include: barley and wheat not covered by the Winter Coverage Endorsement (both initially planted winter and spring crops), buckwheat, canola and rapeseed, corn, dry beans, flax (spring-seeded only), grain sorghum, mustard, oats (spring-seeded only), popcorn (including popcorn revenue), peanuts, rice, safflowers, soybeans, sugar beets, and sunflower seed.

Assignment of Indemnity

AIPs are authorized to waive the witness signature requirement for approval of Assignments through December 31, 2020 for crop years 2019 through 2021, and all applicable crop years through June 30, 2021, as applicable. The insured's and creditor's signature on the Assignment will be required in a pen and ink signature and in the hand of the person whose signature is required or an acceptable electronic (digital) signature in accordance with the AIPs' established Electronic Business Implementation Plan and applicable RMA procedures.

Adjustments for Dumped Milk

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

Producer Signature Deadline for Written Agreement Offers:

If a written agreement offer is provided to the producer, but the producer fails to sign the offer by the expiration date identified on the offer, the producer's signature after the expiration date may still be accepted.

If the signature and date are executed after the expiration date of the written agreement offer, the producer must provide a self-certification, or other documentation, showing that COVID-19 caused a physical inability to sign the offer by the expiration date. This self-certification, or other documentation, must include a brief explanation of the circumstances
surrounding the situation (such as, producer was quarantined, etc.) and must be included with the signed and accepted written agreement offer when returned to RMA.

Only written agreement offers issued by RMA on or before June 30, 2021, with an expiration date on or before July 30, 2021, will have producer signatures accepted after the expiration date with proper self-certification or documentation. All documentation and signatures for these offers must be completed no later than August 2, 2021. Written agreement offers signed after the expiration date due to COVID-19 must be electronically submitted, by the insurance provider, to RMA through the ROE system no later than 15 business days after the producer signed the written agreement offer.

Deadline Extensions for requesting a Regional Office Determined Yield for Category C, Perennial Crops, and Associated Inspections:

For Reinsurance Year 2021, ending June 30, 2021, RMA is authorizing AIPs an additional 30-day extension for submitting Regional Office Determined Yield Requests and for Pre-acceptance Inspection Reports (PAIRs) due to COVID-19 impacts. The request for extension must be submitted to the applicable RMA Regional Office due to the physical inability to meet the established deadlines due to COVID-19 and include self-certification of COVID-19 related issues.

Submission Deadlines for Category B, Annual Crops, Determined Yield and Master Yield Requests:

For Reinsurance Year (RY) 2021, insurance providers are allowed additional time to accept Regional Office (RO) Determined Yield, Master Yield, and Irrigated Determined Yield requests for Category B (annual) crops with a production reporting date within RY 2021. The completed requests can be accepted by the insurance provider by the earlier of the acreage reporting date or applicable deadline plus 30 calendar days. Requests required to be submitted to RMA for review and must be submitted to the Regional Office no later than the earlier of the acreage reporting date or applicable deadline plus 30 calendar days.

Organic Certification Flexibilities

For the 2021, 2022 crop years, and all applicable crop years through June 30, 2021, AIPs may allow a policyholder to report acreage as certified organic, or as acreage in transition to organic, when the policyholder certifies that they have requested a written certification or other written documentation from a certifying agent on or before the ARD. Policyholders must continue to use generally recognized organic practices in accordance with their policy. This relief also applies to the Whole Farm Revenue Protection policy.

Policyholders must notify their agent within 30 calendar days of receiving notification from their certifying agent that their organic plan or certificate was not approved. The policyholder notification may be made by phone, email, text, or other electronic communication method.

If the requested certificate or plan is not approved, the acreage report and premium may be revised appropriately by the AIP when such notice is timely received from the policyholder.

Consistent with existing loss adjustment standards, AIPs must verify an organic plan or certificate is in effect for organic practices during the loss adjustment process.

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 Box and OneSpan 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.

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

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