EMERGENCY FARM LOANS AVAILABLE

Farm Service Agency emergency loans are available in all counties in Missouri because of the drought.

The announcement was made by Brad Epperson, Missouri FSA executive director. Applications are now being accepted at FSA offices throughout the state.

Applications are available for physical and production losses caused by the drought, said Ed Welker, FSA loan service manager for Cape Girardeau, Scott and Mississippi counties.

Applications will be accepted through June 1."We really don't expect too many applications right away," said Welker. "Most farmers will wait until they complete harvest. We need production figures to include with the applications."Loans for physical losses are available to replace or repair damages to buildings, fences or to compensate the farmer for losses of basic livestock, stored crops or supplies on hand, and equipment lost to the drought.

Loans for production losses may be used to buy feed, seed, fertilizer, livestock or to make payments on real estate or chattel debt, said Welker. Loans for production losses cannot be approved until crops have completed their production cycle or have been harvested.

To qualify, a farmer must have suffered a 30 percent loss in production or an actual physical loss that was essential to the successful operation of the farm.

Loans for actual losses are made at an interest rate of 3.75 percent for emergency loans to those eligible applicants who are unable to obtain the actual credit needed from other sources. All programs of the FSA are conducted on a non-discriminatory basis.

Welker said he did not anticipate too many applications from Cape Girardeau County."We expect several form Mississippi County," he said. "That area was hit hard."A number of Bootheel area counties were also hit hard by the drought.

All 114 Missouri and all 75 Arkansas counties were declared agriculture disaster areas by Agriculture Secretary Dan Glickman earlier this month, making them eligible for the low-interest U.S. Department of Agriculture loans.

In making the announcements, Glickman said the drought of 1999 has been one of the most severe in history.

USDA has already provided over $17 million in Emergency Conservation Program (ECP) funds to assist with local water conservation projects in 14 states. These projects may include drilling wells, developing other water resources, and piping water to livestock and confined poultry operations when water resources have become inadequate. USDA also offers federal crop insurance and a program to compensate farmers for certain non-insured crop losses.

USDA's FSA has a variety of programs available in addition to the emergency loan program to help eligible farmers recover from adversity. Interested farmers may contact their local FSA offices for further information on eligibility requirements and applications procedures.

Additional drought information can be found at http: Drought.fsa.usda.govA complete list of counties declared disaster areas can be located at www.fsa.usda.gov/pas/news/releases/index.htm