In this blog, we discuss “USDA Denied Your Farm Program Request: What Are Your Appeal Options?” A denial from a USDA agency can have serious financial consequences for a farmer, rancher, or agricultural business. The decision might involve a Farm Service Agency program, conservation benefits, disaster assistance, a farm loan, wetlands or highly erodible land determinations, crop insurance issues, or another federal agricultural program. Receiving an adverse decision does not always mean the matter is over, but deadlines can be short, and the correct appeal process depends on the agency and the type of decision involved.
The first step is usually the simplest: read the entire decision letter, including the appeal-rights section.
What Is a USDA Adverse Decision?
An adverse decision generally refers to a decision by a covered USDA agency that negatively affects a program participant or applicant.
Depending on the program, a dispute might involve denial of eligibility or benefits, farm loan decisions, disaster assistance, conservation-program determinations, payment calculations, highly erodible land or wetland determinations, compliance findings, or other USDA program benefits.
USDA’s National Appeals Division, commonly called NAD, hears appeals involving adverse decisions issued by covered USDA agencies and programs. The applicable appeal route depends on the agency, program, type of decision, and language in the decision notice.
Not every USDA disagreement goes directly to NAD. Some matters may involve the Farm Service Agency, Natural Resources Conservation Service, Rural Development, Risk Management Agency, or another covered agency, while certain crop-insurance disputes and specialized determinations may follow different procedures. Matters of general applicability are also generally outside NAD’s ordinary appeal jurisdiction.
Do Not Ignore the Appeal Deadline
Timing can be one of the most important parts of a USDA dispute.
For an adverse decision appealable to NAD, a participant generally must submit a personally signed written appeal request within 30 calendar days after receiving the adverse decision. The request should identify the challenged decision and explain why the participant believes it is erroneous. USDA guidance also recommends including a copy of the adverse decision.
Other USDA processes may have their own deadlines and procedures.
For example, certain wetland, highly erodible land, and conservation-compliance determinations may involve 30-day appeal or reconsideration periods, but the applicable notice and procedure should be reviewed carefully.
The safest approach is not to assume that every USDA matter follows exactly the same 30-day process. Read the decision notice and determine which rules actually apply.
Review Why USDA Made the Decision
An effective appeal should address the actual reason for the adverse decision.
It can be tempting to focus on why the result feels unfair. An appeal, however, generally needs to explain why the agency’s factual or legal determination was erroneous.
Ask what rule USDA relied upon and what fact the agency believes was missing or incorrect. Determine whether the dispute involves eligibility, acreage, ownership, production, income, documentation, conservation compliance, a missed deadline, or another program requirement.
Sometimes the central issue is not the rule itself but whether USDA had complete or accurate information when it made the decision.
Preserve the USDA Record
Administrative appeals can be highly document-dependent.
Relevant materials may include USDA decision letters, appeal-rights notices, applications, agency forms, farm maps, acreage reports, conservation plans, loan documents, leases, deeds, production records, photographs, financial records, prior determinations, email communications, and notes of conversations with USDA personnel.
Also preserve evidence showing when the adverse decision was received, because the receipt date may control the appeal deadline. Keep envelopes, email headers, electronic-delivery records, submission confirmations, and the names and contact information of agency representatives when available.
Do not assume that documents submitted later will automatically be considered or cure a missed deadline.
Is Reconsideration or Internal Review Available?
Sometimes.
Certain Farm Service Agency decisions may be subject to reconsideration, mediation, or another level of internal review. The applicable procedure may affect when and how a participant can seek NAD review.
A participant should not assume that requesting internal review automatically preserves every outside appeal deadline.
FSA maintains separate rules governing program appeals, mediation, and related procedures, so the decision notice and applicable program guidance should be reviewed before choosing a path.
Can Mediation Affect the Appeal Deadline?
In some cases, yes.
USDA procedures allow mediation or other alternative dispute resolution for certain adverse decisions. For NAD-covered disputes, a timely request for available mediation or ADR before filing an NAD appeal may stop the running of the 30-day appeal period.
If mediation ends without resolving the dispute, the participant generally has the unused portion of the original appeal period remaining. Mediation does not ordinarily create a brand-new 30-day period.
For example, if a participant waits part of the original appeal period before requesting mediation, those days generally remain counted. Once mediation concludes, the clock resumes rather than starting over.
Because procedures vary, participants should determine whether mediation is available, whether it pauses the applicable appeal clock, and whether a separate appeal request must still be submitted.
Crop Insurance Disputes May Follow Different Procedures
Federal crop insurance deserves special caution because not every crop-insurance disagreement follows the ordinary NAD process.
Certain RMA adverse decisions may be appealable to NAD, but other disputes between a policyholder and an approved insurance provider may involve mediation or arbitration under the Federal Crop Insurance Program.
For example, current crop-insurance policy provisions generally require arbitration to be initiated within one year of the date the approved insurance provider denies the claim or makes the disputed determination, regardless of whether mediation is attempted.
Certain crop-insurance determinations may also be subject to specialized procedures administered through the Risk Management Agency. The specific policy, decision, and appeal instructions should therefore be reviewed before assuming that NAD is the correct forum.
What Happens During a NAD Appeal?
If the matter proceeds to a NAD hearing, the participant generally has an opportunity to present evidence and explain why the agency’s decision was erroneous.
In a NAD appeal, the participant generally bears the burden of proving by a preponderance of the evidence that the agency’s decision was erroneous. In practical terms, the participant must show that it is more likely than not that the agency made a mistake.
That means a strong appeal should be organized around evidence and the applicable program requirements, not simply disagreement with the result.
Depending on the matter, the record may include testimony, agency files, written exhibits, maps, financial information, technical evidence, or other documentation.
What If USDA Says the Decision Is Not Appealable?
A determination that an issue is not appealable may itself be reviewable through NAD procedures.
A participant who receives an agency determination that a decision is not appealable may generally request review by the NAD Director within 30 calendar days after receiving that determination.
The request should be personally signed and should explain why the participant believes the decision qualifies as an appealable adverse decision rather than a matter of general applicability.
Frequently Asked Questions About USDA Farm Program Appeals
How long do I have to appeal a USDA decision?
Many NAD appeals must be requested within 30 calendar days after the participant receives the adverse decision. The specific notice, governing regulation, and any applicable mediation or internal-review procedure should always be checked.
Can I send USDA additional documents?
Potentially. Whether additional evidence may be considered depends on the type and stage of the proceeding. Preserve relevant documents immediately, but do not assume that documents submitted after the initial decision will automatically be considered or cure a missed deadline.
Are all USDA decisions appealable to NAD?
No. NAD handles adverse decisions involving covered USDA agencies and programs. Matters of general applicability and certain specialized determinations may follow different procedures.
Do I need an attorney for a USDA appeal?
A participant generally can pursue an administrative appeal without an attorney. Legal counsel may nevertheless be helpful when substantial benefits are at stake, the regulations are complicated, technical evidence is involved, or the decision could affect future program eligibility.
Can I use mediation instead of appealing?
Mediation may be available for certain disputes, but participants should not assume it replaces the need to preserve appeal rights. A participant should determine whether mediation is available, whether it pauses the appeal clock, and whether a separate appeal request must still be submitted.
Act Before the Appeal Window Closes
A USDA denial can affect farm income, financing, conservation plans, disaster recovery, or eligibility for important agricultural programs.
The most important thing is not to put the letter aside and assume nothing can be done.
Review the decision, identify the deadline, preserve proof of receipt, gather the relevant records, and determine which administrative remedies are available.
Rincker Ag Law works with farmers, ranchers, and agricultural businesses nationwide on federal agricultural-law matters and USDA disputes. If you received an adverse USDA decision and need help evaluating your options, contact Rincker Ag Law at (217) 774-1373.
Legal Disclaimer: This article is for general informational purposes only and does not constitute legal advice or create an attorney-client relationship. USDA programs and administrative appeal procedures vary, and deadlines may be short. Missing an applicable administrative deadline may limit or eliminate available appeal options. Parties should review the specific adverse-decision notice and applicable agency regulations and obtain legal advice regarding their particular circumstances.