Ernst, Reynolds Urge USDA to Improve Disaster Assistance for Iowa Farmers

WASHINGTON – U.S. Senator Joni Ernst (R-Iowa), Ranking Member of the Senate Small Business Committee and a member of the Senate Agriculture Committee, joined Iowa Governor Kim Reynolds and the state’s entire congressional delegation in calling on U.S. Department of Agriculture (USDA) Secretary Tom Vilsack to adjust USDA’s current disaster programs to improve federal assistance available to farmers.

The letter comes after Iowa endured multiple disasters in just three months, including two destructive tornado events and devastating floods in northwest Iowa that severely impacted rural areas and numerous farms. It highlights the differences between USDA and Small Business Administration (SBA) disaster assistance programs and calls on USDA to provide similar access to support for farmers.   

“Given the evolving challenges faced by farmers and ranchers in Iowa and across the nation, it is crucial that they have access to every available tool to help them rebuild after natural disasters,” the delegation wrote.

“The Small Business Administration's (SBA) disaster assistance programs offer vital, flexible support in difficult times to small businesses. We understand that these programs are limited to non-agricultural small businesses, with USDA providing access to complementary programs, such as the Emergency Loan Program, that are intended and specifically designed to assist agricultural producers like farmers and ranchers. While USDA and SBA coordinate to ensure these programs effectively reach rural small businesses, we continue to hear from disaster victims that the terms available to borrowers within the USDA programs are less favorable compared to those at SBA, which offer a greater amount of flexibility with interest, balance, and payment terms. Similar to our request today, the SBA provided much of this flexibility in 2022 and 2023 by utilizing administrative authorities,” they continued.

“As Iowans begin to recover from the many disasters that have impacted them, the historical and continued lack of fairness in what rural communities are offered by USDA is having a meaningful and substantial impact. Consideration should be given to these communities, which are integral to feeding America and the world, by granting them the same or similar terms through USDA as those that are provided to less rural areas through SBA,” they concluded.

Read the full letter here.

Background:

Ernst has experienced the devastation natural disasters cause firsthand; during her time in the Iowa National Guard, she deployed multiple times to help Iowans recover from devastating floods.

In light of recent devastation, Ernst has continued to call for full resources to support Iowans. Ernst has also been visiting the Iowa communities affected and meeting directly with local leaders and emergency response officials to support recovery efforts.

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