Key Takeaways
- New York farms in 32 counties affected by severe spring 2026 weather may qualify for U.S. Department of Agriculture disaster assistance and emergency loans.
- Farm Service Agency (FSA) emergency loans may help eligible producers manage crop losses, operating expenses, essential property replacement and farm-related debt.
- Agricultural producers should document disaster assistance, update cash-flow projections and assess accounting and tax impacts with financial advisors.
New York agricultural producers affected by severe spring 2026 weather may now have access to federal disaster assistance. Governor Kathy Hochul announced on July 25 that the U.S. Department of Agriculture (USDA) issued a Secretarial Disaster Designation covering 32 New York counties after frost, freezing temperatures, hail, high winds, excessive rain and flooding caused significant crop damage.
The damage affected a number of crops, including apples, grapes, stone fruit and strawberries. Reported losses exceed $30 million, and some farms have reported losses approaching 100% of their expected crop. The assistance will not replace lost production, but it may provide an important source of financing as producers manage reduced revenue and cash-flow pressure.
What the Disaster Designation Means
The designation does not automatically provide a grant or direct payment. It allows eligible farm operators in designated counties, as well as certain contiguous counties, to apply for low-interest emergency loans and other assistance through the USDA Farm Service Agency (FSA).
Emergency loan proceeds may be used for a variety of farm needs, including replacing essential property, paying certain production and living expenses and refinancing certain farm-related debt. Eligibility will depend on the individual operation and FSA requirements. Applications generally must be submitted within eight months of the applicable disaster declaration.
Accounting and Tax Considerations
Loans, insurance proceeds, grants and other disaster-related payments may have different accounting and tax treatment depending on the type of assistance received and the facts of the individual operation.
Producers should keep good records of any assistance received and discuss the accounting and tax treatment with their accountant. This is also a good time to consider how the loss and any related assistance may affect cash flow, estimated taxes and year-end planning.
Recommended Next Steps
- Contact the local USDA Service Center promptly to determine available programs, eligibility requirements and filing deadlines.
- Update cash-flow projections for lost crop revenue, payroll, debt service, equipment payments, vendor obligations and the next planting cycle.
- Maintain separate accounting records for loans, insurance proceeds, grants, reimbursements and other assistance received.
- Consult with tax and financial advisors before recording or reporting disaster-related payments or making year-end planning decisions.
How PKF O’Connor Davies Can Help
PKF O’Connor Davies works with farming and agricultural businesses on tax, accounting and financial planning matters. We can help affected producers understand the financial impact of a crop loss, organize the records needed for relief programs and evaluate how any assistance received fits into their broader tax and business planning.
Contact Us
If you need assistance, please contact your PKF O’Connor Davies audit team or:
Valerie Imondi, CPA
Partner
vimondi@pkfod.com