Disaster Set-Aside ProgramSecond Installment Set-Aside

The Farm Service Agency (FSA) is amending the disaster set- aside program requirement to allow farm borrowers to set aside portions of payments that could not be made as scheduled due to a natural disaster as declared by the President or Secretary of Agriculture during 1998, or because of low commodity prices during 1998. Applications for set-aside due to 1998 low commodity prices must be received on or before August 31, 1999. Borrowers who have loans with set-aside payments as of the publication date of this regulation may set aside a second payment on the same loans if determined eligible based on criteria established by this rule. To receive consideration for a second set-aside due to a natural disaster, the borrower's request must be received within 8 months from the date of the disaster designation, in accordance with 7 CFR part 1945, subpart A. The impact of these provisions will allow the agency to serve farmers who have experienced losses due to a natural disaster or low commodity prices during 1998 in an efficient and timely manner while helping them stay in business.