WASHINGTON, D.C. – Today, U.S. Senators Peter Welch (D-Vt.), Bernie Sanders (I-Vt.) and Tina Smith (D-Minn.) introduced the Emergency Loans Reform Act of 2024, legislation to reform the U.S. Department of Agriculture’s (USDA) Farm Service Agency’s (FSA) Emergency Loan Program to remove barriers to emergency funds and be more responsive to the needs of farmers and ranchers in the aftermath of a natural disaster. The Emergency Loans Reform Act would amend USDA’s Emergency Loan Program to remove the written credit denials requirement and increase flexibility in defining losses. The aim of the legislation is to improve eligibility and access for farmers seeking emergency loan funding.
“Emergency farm loans can provide a lifeline to farmers and ranchers in their journey to rebuild and recover after a natural disaster strikes. But USDA’s one-size-fits-all system often fails to reflect losses facing Vermont-sized farms, making it difficult for them to access those crucial funds.” said Senator Welch. “Our bill makes commonsense reforms to the Emergency Loans Program to ensure that farmers and ranchers impacted by natural disasters can quickly get the support they need to recover.”
“The last thing anyone needs after a disaster strikes is more red tape obstructing the road to recovery,” said Senator Sanders. “After the devastating floods of last summer and this summer, we saw too many Vermont farmers struggling to get the emergency assistance they needed in a timely and effective manner. This should not be happening in the richest country in the history of the world. With the existential threat of climate change making these disasters more frequent and more severe, we must take urgent action to reimagine disaster response in this country. This legislation, which makes it easier for farmers to get the emergency aid they need as quickly as possible, is an important step in the right direction and I am proud to join Sen. Welch and my colleagues on it.”
“Farmers are the backbone of our economy and they need our help when severe weather strikes,” said Senator Smith. “This bill will help farmers deal with the inevitable ups and downs in the marketplace, including natural disasters.”
In order to access funds through FSA’s Emergency Loan Program, farmers and ranchers impacted by extreme weather must currently provide evidence of 30% of total production losses and provide one or more written declinations from a commercial lender. As USDA does not always require written denials for similar loan programs, requiring farmers to receive written denials can be particularly burdensome, depriving them of resources at a crucial time. This 30% production loss requirement can be a misleading indicator when determining the need for emergency relief and create unnecessary obstacles for farmers to receive assistance when they need it most.
Learn more about the Emergency Loans Reform Act.
Read the full text of the bill.
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