FSA announces emergency loan program

Nevada Daily Mail

Drought has had a great impact on the area, and rainfall continues to be below normal for this area, causing harm to crops and other hardships for producers.

But some area farmers who suffered certain losses due to persistent drought in the area may be eligible for special loans under a program from the Farm Service Agency, according to a press release.

Farm Service Agency state executive director Tim Kelley announced that as of Oct. 10, 105 counties in Missouri -- including Vernon County -- will have FSA disaster loans available due to the drought in effect Jan. 1 and continuing. Vernon County applications for assistance for physical and production losses caused by this disaster will be accepted at the Vernon County FSA office, 102 W. Allison, Nevada, through June 11, 2007.

Loans for physical losses must be used to replace or repair damage to buildings, fences or to compensate the farmer for losses of basic livestock, stored crops or supplies on hand such as equipment, that was lost due to the disaster.

Loans for production losses may also be used to buy feed, seed fertilizer, livestock or to make payments on real estate or chattel debts. Generally, loans for production losses cannot be approved until crops have completed their production cycle or have been harvested, according to the press release.

In order to qualify, a farmer must have suffered a 30 percent loss in production or an actual physical loss that was essential to the successful operation of the farm.

Loans for actual losses are made at an interest rate of 3.75 percent for emergency loans to those eligible applicants who are unable to obtain the actual credit needed from another source.