Farmers granted disaster aid
By LYDIA COTTRELL lcottrell@timesobserver.comAccording to the office of Congressman Glenn Thompson (R-5), the U.S. Department of Agriculture (USDA) granted disaster designation to Warren, Erie and Susquehanna counties due to losses caused by severe weather that occurred in May 2009.
The designation in Pennsylvania was the result of a letter from New York Governor David Paterson which requested the same designation for counties in his state. The USDA determined that contiguous counties in Pennsylvania also qualified.
"This means that farmers in the three Pennsylvania counties can apply for Farm Service Agency emergency loans immediately and for the new Supplemental Revenue Assistance Program (SURE) that was approved as part of the Food, Conservation and Energy Act of 2008," said Thompson. "However, the Department is in the process of developing regulations and software for the SURE program and it will not be available until later this year."
According to Bob Brown, farm loan manager for the USDA office in Meadville, the disaster loan fund can be used to restore or replace essential property, pay production costs associated with the disaster, pay essential family living expenses, reorganize the farming operation and refinance certain debts.
"The disaster program is very important to our area farmers in that it allows our agency to use low interest rate loans to help farmers recover from a disaster," Brown said. "Current interest rates are 3.75 percent for disaster loans and producers can borrow up to 100 percent of actual production or physical losses, to a maximum amount of $500,000."
As with any loan, there are certain requirements. For example, collateral is required and borrowers must keep acceptable farm records.
"Borrowers may be required to participate in a financial management-training program and obtain crop insurance," Brown added.
The disaster designation for the contigous counties was warranted due to the frost, freezes and high winds that occurred during the ten-day period from May 16 through May 26.
Further information regarding farm assistance loans can be obtained by calling the Crawford County office of the USDA at 814-336-2127.
