USDA Announces Drought Loan Assistance in South Dakota

By Scout Nelson

The United States Department of Agriculture (USDA) Farm Service Agency (FSA) provides emergency loans to eligible agricultural producers affected by natural disasters. These loans are designed to support farmers as they recover from losses caused by prolonged drought and other disaster-related events.

The emergency loan program can be used for several important recovery needs. Eligible producers may use the funds to replace essential equipment, purchase livestock, reorganize farm operations, or refinance certain qualifying debts. The program offers financial flexibility and helps farmers address immediate challenges while continuing day-to-day operations.

Loan applications are reviewed by the Farm Service Agency based on several factors. These include the extent of the producer's losses, the security available for the loan, and the applicant's ability to repay the funds. This process helps ensure that assistance reaches farms that qualify for support.

The disaster designation follows drought conditions identified by the U.S. Drought Monitor. During the growing season, eligible areas experience either D2 Severe Drought conditions for eight or more consecutive weeks or more intense drought levels classified as D3 Extreme Drought or D4 Exceptional Drought. These conditions can reduce crop production, affect livestock operations, and increase financial pressure on farm businesses.

The USDA announcement includes two drought-related disaster designations.

Triggering Disaster #1 affects parts of Minnesota and Wisconsin. This designation is identified as S6395 Drought Fast-Track and began on June 23, 2026. The primary eligible county is St. Louis County, Minnesota. Neighboring eligible counties include Aitkin, Carlton, Itasca, Koochiching, and Lake counties in Minnesota, along with Douglas County in Wisconsin. Producers covered under this designation have until May 3, 2027, to apply for assistance.

Triggering Disaster #2 affects areas in Minnesota, Iowa, and South Dakota. This designation is identified as S6327 Drought Fast-Track and began on June 9, 2026. The primary eligible counties are Pipestone and Rock counties in Minnesota.

Several neighboring counties also qualify for assistance under this designation. Eligible contiguous counties include Lincoln, Lyon, Murray, and Nobles counties in Minnesota, Lyon County in Iowa, and Brookings, Minnehaha, and Moody counties in South Dakota. Producers in these eligible areas may apply for assistance through May 10, 2027.

Photo Credit: usda