USDA Declares Agricultural Drought Disaster in 26 Municipalities: Farmers Have 8 Months to Apply for 3.75% Emergency Loans

The U.S. Department of Agriculture (USDA) approved a drought disaster declaration for 26 Puerto Rico municipalities, a step that opens the door to emergency loans of up to $500,000 and seven assistance programs for farmers who have watched their crops wither for months. Governor Jenniffer González Colón announced the approval on Tuesday, August 26, after formally submitting the request on August 10 to federal Agriculture Secretary Brooke Rollins under the accelerated mechanism known as Fast-Track ¹².

The declaration arrives as the drought keeps squeezing hard. More than 33% of Puerto Rico's territory is under extreme drought and another 30% under severe drought, according to figures cited in coverage of the declaration ⁴. July was San Juan's driest month in more than 120 years of records and the second-hottest ever registered ⁴. In the countryside, farmers have reported losses since May: fruit dropping prematurely, pastures too thin to feed livestock, and irrigation cut from three times a week to just once since June ⁴. One Cabo Rojo farmer described cracks several feet deep across her 15-acre farm ⁴.

The declaration's 13 primary municipalities are Cabo Rojo, Coamo, Guánica, Guayanilla, Juana Díaz, Lajas, Peñuelas, Ponce, Sabana Grande, Salinas, San Germán, Santa Isabel and Yauco ¹². Another 13 are included as contiguous municipalities, which also qualify for the aid: Adjuntas, Aibonito, Barranquitas, Cayey, Guayama, Hormigueros, Jayuya, Lares, Maricao, Mayagüez, Orocovis, Utuado and Villalba ¹². All face severe or extreme drought conditions lasting at least eight consecutive weeks, the federal criterion that triggers the designation ².

The main tool is the Farm Service Agency's (FSA) emergency loan program: it covers up to 100% of production or physical losses, capped at $500,000, and the interest rate in effect since August 1, 2026 is 3.750% ³. The application window is eight months from the designation date ³. The money can be used to replace essential property such as livestock, equipment and structures, cover next season's production costs, pay essential family living expenses, and refinance certain debts ³. Beyond the loan, the designation activates access to programs like the Livestock Forage Disaster Program (LFP), Emergency Assistance for Livestock, Honey Bees and Farm-Raised Fish (ELAP), the Livestock Indemnity Program (LIP), the Emergency Conservation Program (ECP), the Noninsured Crop Disaster Assistance Program (NAP) and the Tree Assistance Program (TAP) ¹².

What it means for you

If you are a farmer or rancher in any of the 26 municipalities, primary or contiguous, you already qualify to apply. It doesn't matter if your operation is small: the key requirement is demonstrating substantial drought damage and an inability to obtain sufficient credit from private lenders ³. Puerto Rico's Agriculture Secretary Irving Rodríguez Torres was direct about it: preserve damage documentation, keep your evidence, and verify your information with the FSA ¹². Photos of lost crops, production records, receipts for extra animal feed and evidence of water shortages are the kind of proof that sustains an application. If you're not a farmer, this declaration doesn't change your water service, but it is a signal of the crisis's scale: more than 180,000 PRASA customers in San Juan and six other towns remain under rationing with rotating 48-hour shutoffs ⁴.

How to do it / Checklist

1. Confirm your farm is in one of the 26 designated municipalities (primary or contiguous) ¹².
2. Document everything now: dated photos, production records from prior years versus this year, receipts for extra water and feed expenses ¹.
3. Gather your farm operating plan and financial information, which the FSA requires with the application ³.
4. Contact your local FSA office in Puerto Rico for guidance and an appointment; loans are applied for directly there ³.
5. Don't let the deadline slip: you have eight months from the designation date to submit ³.
6. Ask about LFP, ELAP, NAP and the other programs too; you can qualify for more than one at once ¹².

What's next

The governor acknowledged that the crisis does not yet meet the requirements for a presidential major disaster declaration under the Stafford Act, which would unlock FEMA funds ¹. That means federal help for agriculture flows through USDA, not FEMA, for now. Meanwhile, the drought monitor updates every Thursday and PRASA rationing continues with no announced end date ⁴. If seasonal rains don't arrive soon, the list of designated municipalities could grow, and CoquiList will be watching every update.

Sources

1. El Nuevo Día - Federal agriculture department declares an emergency in 26 Puerto Rico municipalities due to drought (August 26, 2026)
2. Primera Hora - Federal agriculture department declares drought disaster for 26 municipalities (August 26, 2026)
3. USDA Farm Service Agency - Emergency Farm Loans and current interest rates (August 2026)
4. Associated Press (via Local10) - US declares drought disaster for parts of Puerto Rico as dry conditions persist (August 26, 2026)