Physical loss loans available

DES MOINES ? Iowa State Executive Director for USDA Farm Service Agency John R Whitaker announced Administrator Bruce Nelson has made physical loss loans available for counties in Iowa.

Farm operators who have suffered major physical losses caused by hail, excessive rain, high winds and tornadoes on April 14 may be eligible for low-interest emergency loans.

Farm operators who have suffered major physical losses caused by excessive rain, high winds and tornados on May 3- 4 also may be eligible for low-interest emergency loans.

Farm operators in Jefferson County may be eligible for low-interest emergency loans because the county is contiguous to a primary county where the two major physcial losses occurred.

The FSA may make 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.

Applicant must be unable to obtain credit from other usual sources to qualify for the FSA Farm Loan Program assistance. The interest rate for emergency loans is 3.75 percent. 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. 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.

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