The U.S. Department of Agriculture (USDA) has designated 11 counties in Texas as primary natural disaster areas due to losses and damages caused by recent drought. The agency noted farmers and ranchers in these areas who meet eligibility requirements may apply through the USDA Farm Service Agency (FSA) for emergency loans.
The primary disaster counties named are Borden, Dawson, Fisher, Gaines, Hill, Howard, Jones, Martin, Mitchell, Nolan and Scurry.
Farmers and ranchers in the following contiguous counties in Texas also qualify for natural disaster assistance: Andrews, Bosque, Callahan, Coke, Ellis, Garza, Glasscock, Haskell, Johnson, Kent, Limestone, Lynn, McLennan, Midland, Navarro, Runnels, Shackelford, Sterling, Stonewall, Taylor, Terry and Yoakum.
Farmers and ranchers in contiguous Lea County in New Mexico also qualify for natural disaster assistance.
Emergency loan funds may be used to restore or replace essential property, pay all or part of production costs for the disaster year, pay essential family living expenses, reorganize the farming operation or refinance certain debts.
Eligibility requirements for emergency loans include owning or operating land located in a county designated as a primary disaster area or owning or operating land in a county contiguous to the declared primary counties.
The farmer or rancher applying for the loan must be a U.S. citizen or permanent resident who has suffered at least a 30 percent loss in crop production or a physical loss to livestock, livestock products, real estate or chattel property (non-real estate property.)
Applicants are reminded that all emergency loans must be fully collateralized, but the specific type of collateral can vary depending on the loan purpose and repayment ability of each applicant.
If someone cannot provide adequate collateral, 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 emergency loan funds.
Loan limits are up to 100 percent of actual production or physical losses up to a maximum of $500,000.
FSA said in a press release the agency “will consider each loan application on its own merits, taking into account the extent of losses, security available and repayment ability.”
Other FSA programs may be available that do not require a disaster declaration to provide assistance to farmers and ranchers.
Farmers in eligible counties have eight months from the date of the disaster declaration of April 12 to apply for loans to help cover part of their actual losses.
Additional information is also available at http://disaster.fsa.usda.gov.