Rutherford County farmers can get a break from this year’s drought with emergency loans from the U.S. Department of Agriculture Farm Service Agency.
Tennessee FSA Executive Director Jamie Jenkins approved providing low-interest loans to local farmers caused by the 2008 lingering drought. Farmers can apply for up to their total production loss, not to exceed $500,000.
Applications will be taken through July 1, 2009.
For more information, contact local Farm Loan Manager Stanley Browning at 150 Albert Gallatin Ave., Gallatin Tenn. 37006. Or contact the Rutherford County office at 615-893-9295 extension 3.
USDA's Farm Service Agency provides emergency loans to help producers recover from production and physical losses due to drought, flooding, other natural disasters, or quarantine.
Emergency loan funds may be used to restore or replace essential property, pay all or part of production costs associated with the disaster year, pay essential family living expenses,
reorganize the farming operation and refinance certain debts.
Emergency loans may be made to farmers are established family farm operators and have sufficient farming or ranching experience, are citizens or permanent residents of the United States, have suffered at least a 30-percent loss in crop production or a physical loss to livestock, livestock products, real estate, or chattel property, have an acceptable credit history, are unable to receive credit from commercial sources, can provide collateral to secure the loan and have repayment ability.
FSA loan requirements are different from those of other lenders. Some of the more significant differences are borrowers must keep acceptable farm records, operate in accordance with a farm plan they develop and agree to with local FSA staff, and
may be required to participate in a financial management-training program and obtain crop insurance.
All emergency loans must be fully collateralized. The specific type of collateral may vary depending on the loan purpose, repayment ability and the individual circumstances of the applicant.
If applicants cannot provide adequate collateral, their repayment ability may be considered as collateral to secure the loan. A first lien is required on property or products acquired, produced, or refinanced with loan funds.
Loans for crop, livestock, and non-real estate losses are normally repaid within 1 to 7 years; depending on the loan purpose, repayment ability, and collateral available as loan security.
In special circumstances, terms of up to 20 years may be authorized. Loans for physical losses to real estate are normally repaid within 30 years. In certain circumstances, repayment may be made over a maximum of 40 years.
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