	Background

Natural disasters, such as droughts, floods, hurricanes, and other  adverse weather events, pose risks to agricultural producers. Disaster Assistance Programs Leave Few Gaps in Coverage for Small Agricultural Producers

The 10 FSA and SBA disaster assistance programs we identified that  small agricultural producers and businesses that support agriculture can  use to recover from natural disasters provide assistance that can cover  most losses. Awareness and Eligibility Issues Limit Small Aquaculture and Nursery Producers’ Participation in Disaster Assistance Programs

Three main factors may limit small aquaculture and nursery producers’  participation in the 6 of the 10 disaster assistance programs for which  they could be eligible. Third, some  producers applied but did not qualify because they did not meet certain  program requirements. In general, these producers do not have a  past or current relationship with FSA or SBA. Therefore, aquaculture and nursery producers may be missing  opportunities to receive assistance that could help them maintain a viable  business after experiencing a natural disaster. FSA and SBA Efforts to Collaborate on Disaster Assistance to Small Aquaculture and Nursery Producers Are Limited

FSA and SBA engaged in some efforts to collaborate in providing disaster  assistance to small aquaculture and nursery producers, but the efforts  were limited to referring producers from one agency to the other without  identifying the assistance that may be available to these producers. Both FSA national-level officials and state-level Emergency  Loan officials told us that FSA field staff know little about SBA’s disaster  assistance programs, and SBA staff know little about what factors affect  whether an agricultural loan will be repaid. As we reported in October 2005, agencies that  have complementary programs can enhance the value of these programs  through interagency collaboration. Without more formal collaboration, applicants for  disaster assistance may not be consistently referred by one agency to the  other, leading to fewer opportunities for these small producers to get  assistance for which they otherwise might qualify, and the value of these  disaster assistance programs is diminished for aquaculture and nursery  producers. Conclusions

FSA’s and SBA’s 10 disaster assistance programs serve largely different  populations but can provide an important safety net to help small  agricultural producers recover from disasters. Recommendations for Executive Action

To help ensure that small aquaculture and nursery producers are aware  of the disaster assistance programs available to them, we recommend  that the Secretary of Agriculture and the Administrator of the Small  Business Administration direct FSA and SBA officials to take the following  two actions:
Conduct targeted outreach to small aquaculture and nursery  producers, for example, by building on existing agency outreach  programs. Appendix I: Objectives, Scope, and Methodology

Our objectives for this engagement were to (1) examine selected U.S.  Department of Agriculture (USDA) Farm Service Agency (FSA) and Small  Business Administration (SBA) disaster assistance programs and the  types of small agricultural producers that they cover; (2) identify the main  factors, if any, that may limit small aquaculture and nursery producers’  participation in disaster assistance from FSA and SBA; and (3) examine  FSA and SBA efforts to collaborate in providing disaster assistance to  small aquaculture and nursery producers.
Why GAO Did This Study

Farmers and other agricultural producers are exposed to natural disasters, such as droughts, floods, hurricanes, and tornadoes. In the aftermath of such events, FSA and SBA disaster assistance programs can provide an important safety net for these producers. However, after past natural disasters, industry groups and others have raised concerns that some small agricultural producersparticularly aquaculture (such as farmed fish and shellfish) and nursery (such as trees and plants) producersreported being ineligible to obtain this assistance.
GAO was asked to (1) examine FSA and SBA disaster assistance programs and the coverage they provide to small producers; (2) identify the main factors, if any, that may limit small aquaculture and nursery producers participation in these disaster assistance programs; and (3) examine FSA and SBA efforts to collaborate in providing such assistance to these producers. GAO reviewed the 10 FSA and SBA disaster assistance programs that become available following a natural disaster and that provide direct financial assistance or loans to these producers, interviewed agency officials and industry representatives, and reviewed agency documents and regulations.

What GAO Found

The U.S. Department of Agriculture's (USDA) Farm Service Agency (FSA) and the Small Business Administration (SBA) have 10 disaster assistance programs that small agricultural producers and businesses that support agriculture can use to recover from natural disasters. These programs serve largely different populations but leave few gaps in the disaster assistance available to most small agricultural producers. Aquaculture and nursery producers could be eligible for six of these programs, but their participation is limited by awareness and eligibility issues.
GAO identified three factors that may limit small aquaculture and nursery producers' participation in the 6 disaster assistance programs for which they could be eligible. In particular, the producers are often not aware of the programs, have other options for assistance, or do not qualify because they do not meet certain program requirements. Both FSA and SBA conduct outreach related to their disaster assistance programs, but neither agency has specifically targeted its efforts toward small aquaculture and nursery producers. As a result, eligible producers are missing opportunities to obtain assistance that could help them maintain a viable business after experiencing a natural disaster.
FSA and SBA engaged in some informal efforts to collaborate in providing disaster assistance to small aquaculture and nursery producers. However, the efforts were limited because FSA field staff know little about SBA's disaster assistance programs, and SBA staff know little about the factors that affect whether an agricultural loan will be repaid. GAO has reported that agencies with complementary programs can enhance the value of these programs through interagency collaboration. Without more formal collaboration, small producers may not be consistently referred by one agency to the other, leading to fewer opportunities for these small producers to get assistance for which they otherwise might qualify.

What GAO Recommends

GAO recommends that USDA and SBA target outreach to small aquaculture and nursery producers, for example, by building on existing outreach, and develop a strategy to formally collaborate on disaster assistance for such producers. USDA and SBA generally concurred with GAO's recommendations.