November 2, 2006

FSA Announces Emergency Loan Designation Caused By Drought

Tim Kelley, State Executive Director, Farm Service Agency announced effective October 10, 105 counties in Missouri will have FSA disaster loans available due to drought which occurred January 1, 2006, and continuing. Applications for assistance will be accepted at the county office of the Farm Service Agency, Route 3 Box 56, Edina, MO 63537 or Route 1 Box 73H, Memphis, MO 63555 for physical and production losses caused by this disaster. Applications will be accepted 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, equipment, etc., 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% 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% for emergency loans to those eligible applicants who are unable to obtain the actual credit needed from another source. All loan programs of the Farm Service Agency are conducted on a non-discriminatory basis.

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