Boll Weevil Eradication Loan Program

The Farm Service Agency (FSA) offers direct and guaranteed loans to farmers and ranchers to promote, build, and sustain family farms for a thriving agricultural economy. The goal of FSA's farm loan program is to provide supervised credit and manageme

To assist non-profits and state government agencies in the eradication of boll weevils from cotton producing areas and ensuring the pest is not re-introduced.

An eligible applicant must: (1) Meet all requirements prescribed by APHIS to qualify for cost-share grant funds as determined by APHIS, (FSA will accept the determination by APHIS as to an organization's qualification); (2) Have the appropriate charter and/or legal authority as a non-profit corporation or as a State organization specifically organized to operate the boll weevil eradication program in any State, biological, or geographic region of any State in which it operates; (3) Possess the legal authority to enter into contracts, including debt instruments; (4) Operate in an area in which producers have approved a referendum authorizing producer assessments and in which an active eradication or post-eradication program is underway or scheduled to begin no later than the fiscal year following the fiscal year in which the application is submitted; (5) Have the legal authority to pledge producer assessments as security for loans from FSA. Individual producers are not eligible for loans.

The beneficiaries of this program include the local boll weevil organization and agricultural community as well as local and State governments.

Loan funds may be used for any purpose directly related to boll weevil eradication activities, including, but not limited to: I. Purchase or lease of supplies and equipment; II. Operating expenses, including but not limited to, travel and office operations; III. Salaries and benefits. Loan funds may not be used to pay expenses incurred for lobbying, public relations, or related activities, or to pay interest on loans from the Agency.

The loan term will be based upon the needs of the applicant to accomplish the objectives of the loan program as determined by FSA, but may not exceed 10 years.

No loan will be made until all Federal and state statutory and regulatory environmental requirements have been complied with.

Loan requests will be processed based on the date FSA receives the application. Loan approval is subject to the availability of funds. However, when multiple applications are received on the same date and available funds will not cover all applications received, applications from active eradication areas, which FSA determines to be most critical for the accomplishment of program objectives, will be funded first.

Within 60 calendar days after receiving a complete loan application, the Agency will complete the processing of the Direct loan request and notify the applicant of the decision reached, and the reason for any disapproval.

Applicants may reapply for an FSA loan at any time. Applicants who were given a denial of a loan request will be advised of potential actions or alternatives that might resolve or help resolve the issues that resulted in the denial of the loan request. Applicants previously given a loan denial must establish that substantial change has occurred, since the denial decision.

FLP applicants and borrowers have the right to request reconsideration, file appeals, and enter into alternate dispute resolutions about adverse decisions. If a loan is not approved, FSA will provide written notification of opportunities to request: Reconsideration Applicants are provided with the opportunity to meet with the FSA loan officer to present additional information and explain why you believe FSA's decision may be in error; Mediation A process for resolution of a disagreement. A trained neutral mediator assists two or more parties who disagree by looking at the issues, considering all available options, and attempting to agree on an acceptable solution; Appeal to the Department of Agriculture National Appeal Division (NAD), an independent organization within USDA, where you may present evidence which demonstrates why you believe that FSA's decision may be wrong.