5A-19.001. Agriculture and Aquaculture Producers Natural Disaster Recovery Loan Program

(1) Pursuant to Section 570.822, F.S., the Agriculture and Aquaculture Producers Natural Disaster Recovery Loan Program (Program) is established within the Department of Agriculture and Consumer Services (Department). The Program will be managed by the Department as a revolving loan fund to make loans to agriculture and aquaculture producers that experienced damage or destruction from a declared natural disaster. These loan funds shall only be used to restore, repair, or replace essential physical property or remove vegetative debris from essential physical property. The definitions in s. 570.822, F.S., shall apply to this rule.

(2) Application Process.

(a) Following a Declared Natural Disaster, the Department will notice the opening of an application period for the Program.

(b) Applicants shall meet all eligibility criteria provided in s. 570.822(3), F.S.

(c) Eligible applicants shall submit an application through https://disasterloan.fdacs.gov.

(d) Applicants shall submit all documentation and information as required in the Agriculture and Aquaculture Producers Natural Disaster Recovery Loan Application, FDACS-01421 (10/24), which is hereby adopted and incorporated by reference. The form can be accessed at http://flrules.org/Gateway/reference.asp?No=Ref-17151 and is also available for review at https://www.fdacs.gov/Forms.

(e) An applicant seeking to use loan funds for purposes authorized by the Program on leased lands must provide authorization from the landowner as part of the application process using the Owner’s Authorized Representative form within the Agriculture and Aquaculture Producers Natural Disaster Recovery Loan Application, FDACS-01421 (10/24), which is incorporated by reference in paragraph (2)(d) of this rule.

(f) Prior to approval or denial of an application, the Department or its third-party administrator may request that an applicant amend or supplement its application with additional documentation or information to demonstrate eligibility to participate in the program, the need for financial assistance, the ability to repay the requested loan, or to meet any other requirements set forth in law. Such documentation and information may include one or more of the following:

1. Financial statements.

2. Tax documents.

3. Assets and liabilities listings.

4. Banking and payment records.

5. Operational and transactional records.

6. Proof of insurance.

7. Lease agreements to which the applicant is a party.

(3) Application Review. Applications received within the noticed application window will be reviewed for completeness. Incomplete applications are not considered to be received by the department and will not be scored until the Applicant has submitted all the requested documentation. An applicant must demonstrate the need for financial assistance and an ability to repay the loan, which will be determined by evaluating the following criteria: loan amount requested; purpose of the loan; actual farm income; projected farm income; any non-farm income; assets; liabilities; and credit score (no minimum score is required). The Department may decline to fund a requested loan if the Department believes in its reasonable discretion that the Applicant represents a significant risk of nonpayment or if the receipt of a loan by the Applicant would affect that Applicant’s ability to receive reimbursement under federal programs for disaster-related expenses. Approved applications will be funded until funds have been exhausted. The Department has the discretion to fund applications at a lower amount than requested, based on the documentation provided, and in relation to demonstrated need from other eligible applicants.

(4) Loan Terms. Upon approval, the applicant will be provided a standard agreement with terms and conditions for the loan. The Applicant must enter into an agreement with the Department prior to the receipt of funds. The maximum loan amount per applicant is $500,000.00 for each application period. Each 10-year loan shall be made at a 0% interest rate, and payments shall be made in accordance with the terms of the loan.

(5) The department will periodically review loan recipients to determine compliance with applicable statutes, rules, and terms of the loan agreement, including maintaining farm records that provide proof of production levels and bona fide farm operations and presenting them to the Department or its third-party administrator upon request for review. These records may include proof of enrollment and implementation of applicable agricultural or silvicultural best management practices, farm balance sheets, proof that the land has maintained its agricultural classification pursuant to s. 193.461, F.S., or aquaculture certificate of registration, or any other records that prove the productions levels and good faith commercial agricultural endeavors of the farm operation. If the department finds that a loan recipient is no longer in production, has used loan funds to build a Nonresidential Farm Building that does not comply with the storm-hardening standards adopted herein, or has otherwise violated the loan agreement, the department may seek repayment of the full original principal balance outstanding, including any interest or costs, as applicable.

(6) A Nonresidential Farm Building as defined in s. 604.50(2), F.S., constructed using loan funds must comply with the following storm-hardening standards.

(a) Notwithstanding the exemptions set forth in s. 553.73(10), F.S., and excluding those structures identified in paragraph (b), enclosed Nonresidential Farm Buildings must have roof-to-wall connections rated for the wind zone where the structure is built, as specified in The Florida Building Code, 8th Edition (2023), which is adopted and incorporated by reference in Rule 61G20-1.001, F.A.C. Compliance with this requirement shall be verified in writing by a licensed professional engineer.

(b) For all other Nonresidential Farm Buildings, including open sided barns, greenhouses, and shade houses:

1. The builder or contractor must verify in writing that the structure was built to the manufacturer’s specifications; or

2. A licensed structural engineer must provide a signed and dated verification that the structure was designed in accordance with reasonable storm-hardening techniques for the purpose and intent of the structure.

Rulemaking Authority 570.07(23), 570.822(9) FS. Law Implemented 570.822 FS. History–New 12-5-24.