August 23, 2001

Region Eligible For FSA Disaster Loans After Spring Storms

The Scotland County Farm Service Agency office will be among the 19 county offices accepting applications for assistance for farmers faced with physical and production losses caused by natural disasters that struck the region this spring.

Tim Kelley, State Executive Director of the FSA announced the availability of the assistance to landowners following flooding, hail, severe thunderstorms and excessive rains that occurred May 1st and beyond.

FSA 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, 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.

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 actual credit needed from another source.

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