FSA Loss Notification Issued for Counties in Iowa

FSA Loss Notification Issued for Counties in Iowa

Farmers who suffered major physical losses caused by storms in spring 2012 may be eligible for low-interest emergency loans.

FAQ: USDA on July 5, 2012 announced it is making available low-interest loans to victims of disaster conditions in Iowa that occurred with storms earlier this spring. Which counties in Iowa are eligible for these loans?

Answer: Beth Grabau, information and outreach specialist with USDA's Farm Service Agency state office in Des Moines, provides the following explanation. "You are correct, on July 5, 2012 USDA granted approval for physical loss notifications," she says. "However, the disaster conditions are for different dates and different counties."

Farmers who suffered major physical losses caused by storms in spring 2012 may be eligible for low-interest emergency loans.

John Whitaker, state executive director for USDA's Farm Service Agency in Iowa, noted in a July 5 press release that Bruce Nelson, FSA administrator in Washington, D.C., made the physical loss loans available for a number of counties.

Administrator's Physical Loss Notification for 21 counties in Iowa: Farm operators who have suffered major physical losses caused by hail, excessive rain, high winds and tornados on April 14, 2012 may be eligible for low-interest emergency loans from USDA. This administrator's physical loss notification has been issued for five counties as the primary damaged area: Fremont, Keokuk, Montgomery, Page and Union counties. The contiguous counties are: Adair, Adams, Cass, Clarke, Decatur, Iowa, Jefferson, Madison, Mahaska, Mills, Pottawattamie, Poweshiek, Ringgold, Taylor, Wapello and Washington.

Administrator's Physical Loss Notification for 11 counties in Iowa: Farm operators who have suffered major physical losses caused by excessive rain, high winds and tornados on May 3 and 4, 2012 may be eligible for low-interest emergency loans. This administrator's physical loss notification has been issued for three counties as the primary damaged area: Henry, Louisa and Washington. Eight counties are contiguous to this designated disaster area, making these producers also potentially eligible for programs based on this designation. The contiguous counties are: Des Moines, Jefferson, Johnson, Iowa, Lee, Muscatine and Van Buren.

Administrator's Physical Loss Notification for 4 counties in Iowa: Farm operators who have suffered major physical losses caused by high winds on May 27, 2012 may be eligible for low-interest emergency loans. This administrator's physical loss notification has been issued for Lyon County as the primary damaged area. Three Iowa counties are contiguous to this designated disaster area, making these producers also potentially eligible for programs based on this designation. The contiguous counties are: O'Brien, Osceola and Sioux.

Administrator's Physical Loss Notification for 7 counties in Iowa: Farm operators who have suffered major physical loss loans caused by hail, excessive rain and high winds on June 14, 2012 may be eligible for low-interest emergency loans. This administrator's physical loss notification has been issued for two counties as the primary damaged area: Dickinson and Emmet. Five counties in Iowa are contiguous to this designated disaster area, making these produces also potentially eligible for programs based on this designation. The contiguous counties are Clay, Kossuth, O'Brien, Osceola and Palo Alto.

FSA may make USDA loans available to family farmers who qualify

The Farm Service Agency may make USDA Emergency Loans to eligible family farmers which will enable them to return to their normal operations if they sustained qualifying losses resulting from natural disaster. Physical loss loans may be made to eligible farmers to enable them to repair or replace damaged or destroyed physical property, including livestock losses, essential to the success of the farming operation. Examples of property commonly affected include: essential farm buildings, fixtures to real estate, equipment, livestock, perennial crops, fruit and nut bearing trees, and harvested or stored crops. 

Applicants must be unable to obtain credit from other usual sources to qualify for the Farm Service Agency Farm Loan Program assistance. The interest rate for emergency loans is 3.75%. Each applicant applying for credit will be given equal consideration without regard to race, creed, color, marital status, or national origin. 

Final date to apply for loan under this designation is March 4, 2013

The repayment for most disaster loans are based on the useful life of the security, the applicant's repayment ability, and the type of loss, says Whitaker. Loans to replace fixtures to real estate may be scheduled for repayment for up to 40 years. 

The final date for making application under this designation is March 4, 2013. 

Interested farmers may contact their local County FSA office for further information on eligibility requirements and application procedures for these and other programs. Information can also be found on-line at www.fsa.usda.gov.

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