Amador County – The U.S. Department of Agriculture announced March 9 that growers with crops affected by a freeze in Amador County and five other Northern California counties last November are now eligible for a limited time to apply for low-interest loans to replenish their losses.

Qualification include that farmers must “have suffered at least a 30 percent loss in crop production or a physical loss to livestock, livestock products, real estate or chattel property.”

Growers in Amador County who had their crops affected by freezing temperatures are now eligible to receive low interest emergency loans from the USDA, up to $500,000.

The USDA Secretary of Agriculture designated a disaster due to freezing temperatures on Nov. 25-26 of 2010. The designation was made primarily in San Joaquin County, and in contiguous counties, including Amador and Calaveras counties, and four others. The designations were announced March 9.

Growers in those counties are eligible for low-interest emergency loans from the USDA’s Farm Service Agency, and they have eight months, through Nov. 9, 2011, to apply for such loans to help cover part of their losses.

FSA documents list that USDA “emergency farm loans” help “producers recover from production and physical losses due to drought, flooding, other natural disasters, or quarantine.” The emergency loans can be used to “restore or replace essential property” or “pay all or part of production costs associated with the disaster year.”

The loans can also “pay essential family living expenses,” help to “reorganize the farming operation,” and “refinance certain debts.”

Collateral is required, and “producers can borrow up to 100 percent of actual production or physical losses, to a maximum amount of $500,000.” FSA documents said the “loans for crop, livestock and non-real estate losses are normally repaid within one to seven years,” but may be extended to 20-year loans. Also, “loans for physical losses to real estate are normally repaid within 30 years,” but may be extended to 40-year loans in “certain circumstances.”

The interest rate on the loans is currently 3.75 percent. Applications for emergency loans must be received within eight months of the county’s disaster designation.

Among requirements, the “borrowers must keep acceptable farm records.” They also “must operate in accordance with a farm plan they develop and agree to with local FSA staff.” The borrowers also “may be required to participate in a financial management training program and obtain crop insurance.”

Story by Jim Reece This email address is being protected from spambots. You need JavaScript enabled to view it.