Farmers are eligible for low-interest loans

HARRISBURG - Farmers in 47 Pennsylvania counties, including Franklin, will be eligible for U.S. Department of Agriculture low-interest emergency loans to help recover from drought and storm damage, said Governor Edward G. Rendell.

U.S. Agriculture Secretary Mike Johanns authorized the low-interest emergency loans for farmers in Pennsylvania counties after receiving Governor Rendell's request for emergency disaster declaration due to precipitation deficits and low groundwater levels.

"Producers are struggling to maintain profitable businesses because of drought and severe storms that have hit the commonwealth," Governor Rendell said. "I thank Secretary Johanns for acting swiftly to help our farmers recover from these extreme losses, protect their livelihoods and safeguard our agricultural industry."

Twenty-six counties were declared primary disaster areas. Twenty-one additional counties were named contiguous disaster areas because they border counties that were affected by drought.

Farmers may also be eligible to receive compensation if Congress takes action in the future to provide emergency disaster assistance in the form of direct payments, said Governor Rendell.

Governor Rendell sent a letter to Secretary Johanns in August requesting the low-interest loans. His requests in previous years have given farmers the opportunity to apply for similar loans for flood, frost, hail and drought damage, along with the ability to apply for direct disaster recovery compensation as provided for by Congress for crop losses in 2005 and 2006.

Farmers in the primary and contiguous drought counties may apply for low-interest emergency loans through their county farm service agency, provided eligibility requirements are met. The agency will consider each application on its own merit based on losses, available resources and repayment ability.

To receive a loan application, farmers should contact their local farm service agency or visit www.fsa.usda.gov