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Farmers in 25 upstate counties eligible for emergency loans

Posted October 15, 2007 11:00 pm

Rob Juteau

U.S. Senator Charles E. Schumer Monday announced that twenty-five upstate New York counties, including Herkimer, have been designated as disaster areas by the U.S. Department of Agriculture, qualifying farmers for Farm Service Agency emergency loan assistance.

The USDA designations come as the result of a severe drought that has continued in parts of the state since May 1, and from a significant hail storm on July 13 in the Finger Lakes region.

"Too many farmers are already stretched too thin, and this designation will help them get some of the aid they need," Schumer, D-NY, said. "No one can account for natural disasters, which is why aid like this is so crucial. Family farms play a vital role in our communities and state economy, and we must do everything we can to help them out when they are in need."

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Seven counties - Chautauqua, Genesee, Lewis, Ontario, Erie, Jefferson and Monroe - were designated "primary" natural disaster areas caused by an ongoing drought, meaning these seven counties sustained more than thirty percent loss of at least one crop in the county. Thirteen counties - Cattaraugus, Herkimer, Livingston, Niagara, Oneida, Orleans, Oswego, Seneca, St. Lawrence, Steuben, Wayne, Wyoming and Yates - were labeled "contiguous" disaster areas due to significant crop loss and proximity to primary regions. Wayne County was designated a "primary" natural disaster area after it was hit by a freak hail storm on July 13, and four counties - Cayuga, Monroe, Ontario and Seneca - were labeled "contiguous" disaster areas due to significant crop loss and proximity to the heavy-hit Wayne County region.

Farmers who own or operate land in contiguous and primary disaster areas are eligible for low-interest emergency loans of up to 100 percent of actual loss to a maximum of $500,000. Applicants must prove that they have suffered at least a thirty percent loss in crop production or physical loss in livestock, real estate or chattel property, have acceptable credit history, are unable to receive credit from commercial sources, can provide collateral to secure the loan and have repayment ability. Emergency loans can be used to restore or replace essential property, pay all or part of production costs from the disaster year, pay essential family living expenses, reorganize the farming operation and refinance certain debts.

Schumer said the FSA routinely provides emergency loans to help producers recover from production and physical losses due to drought, flooding, unseasonable temperatures or other natural disasters. One-half to two-thirds of the counties in the U.S. have been designated as disaster areas in the past several years. Since its creation in 1994, the FSA has taken on the goals of stabilizing farm income, helping farmers conserve land and water resources, providing credit to new or disadvantaged farmers and ranchers and helping farm operations recover from the effects of disaster.

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