7 CFR 766.52 - Eligibility.
(a)Borrower eligibility. The borrower must meet all of the following requirements to be eligible for a DSA:
(1) The borrower must have operated the farm in a county designated or declared a disaster area or a contiguous county at the time of the disaster. Farmers who have rented out their land base for cash are not operating the farm.
(4) As a direct result of the natural disaster, the borrower does not have sufficient income available to pay all family living and farm operating expenses, other creditors, and debts to the Agency. This determination will be based on:
(i) The borrower's actual production, income and expense records for the year the natural disaster occurred;
(ii) Any other records required by the Agency;
(iii) Compensation received for losses; and
(iv) Increased expenses incurred because of the natural disaster.
(5) For the next production cycle, the borrower must develop a feasible plan showing that the borrower will at least be able to pay all operating expenses and taxes due during the year, essential family living expenses, and meet scheduled payments on all debts, including FLP debts. The borrower must provide any documentation required to support the farm operating plan.
(1) Any FLP loan to be considered for DSA must have been outstanding at the time the natural disaster occurred.
(6) The loan must not have a DSA in place.